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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?

To: RoseCampion who wrote (1754)	12/28/1999 10:23:00 PM
From: KFE	Read Replies (1) \| Respond to of 2241

Rose, Nice to see you on the options boards again. They seem to be dying on SI. It's stupid, really, because a short put has exactly the same risk/reward profile as a covered call - there's no logical reason not to allow it if it's secured by cash or what would be marginable securities I agree with your statement except for the last two words. Securities cannot be used because what would you do if they decreased in value (despite what most people believe right now is impossible). You would run into over funding problems if you tried to deposit more funds. I believe that most firms don't allow naked cash secured puts in IRA's because of the administrative work involved. Regards, Ken

To: RoseCampion who wrote (1754)	1/2/2000 2:41:00 AM
From: SnowShredder	Read Replies (1) \| Respond to of 2241

Are there any time restrictions on the length of holding an equity long call/put in an IRA? In other words, can one daytrade an equity long call/put in a IRA? Thanks...Best of Luck, Where'd He Go?

To: RoseCampion who wrote (1754)	1/3/2000 8:24:00 PM
From: LKO	Read Replies (1) \| Respond to of 2241

Rose (or anyone). A newbie question on the interactions of options and spinoffs. Assume a company X spins off a child Y and distributes shares of its child Y to all its shareholders. Typically, in such case the price of X day before distribution would be (approximately) be same as price of (X+Y) after distribution. (1) If options are traded on the child stock, does the option/LEAP turn into two also based on some ratio for strike price ? (2) If a company spins off a child which does not have options traded, what happens then ? Does the strike price get reduced by some ratio ? I guess an example would be the HWP spin-off of A which will fit the example (1) when they distribute shares. Cannot think of an example of (2) though I can imagine it happening. (Perhaps PSFT distribution shares of MMTM (no options) may fit the example, though I am not shares if such a distribution happened/will-happen. Someone might know of a real example to make this question more interesting).