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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (5647)	8/31/1999 1:19:00 AM
From: The Reaper	Read Replies (1) \| Respond to of 54805

I've been selling calls on margined QCOM at E-Trade for my account and an account I manage. In my scenario, I'm not sure that all the $50K that is received from the sale of the calls could be withdrawn. But, even if it isn't it would definitely be applied against the margin debt and any margin interest would disappear. In fact, they would be paying interest to you on the credit balance. I'm a little fuzzy on how they figure buying power sometimes, but I'm sure you could leverage out a few more hundred shares for the free ride you were talking about with the sale of those covered calls. Sure would be fun to try this and see how far you could get into the position before buying power runs out! kirby