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Non-Tech : Charles Schwab (SCH) -- A tech-stock profile? -- Ignore unavailable to you. Want to Upgrade?

To: Alvin Yee who wrote (1151)	1/2/2000 1:27:00 PM
From: Carl R.	Read Replies (2) \| Respond to of 1390

Schwab, like most brokerages does not like to grant the ability to sell naked options because many people get themselves into big trouble doing so. You can quickly lose more than the worth of your account, putting the brokerage at risk. In order to sell naked options you will have to show that you have a very high net worth, and extensive knowledge of what you are doing. You will also have to maintain a sizeable amount of equity in your account. I'm not sure of the amount, but I think it would need to be at least $100k. Furthermore, if you do get the ability to trade naked options, and you make a trade that causes your equity to be insufficient, you should expect them to act quickly to liquidate your position as a way of protecting themselves. They may give you the courtesy of a phone call, I really don't know, but I don't believe they are required to, and they may not. If you do get authorized to do this, be very careful and limit the size of your exposure. Carl