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Strategies & Market Trends : Selling Puts: Have Cash Will Travel -- Ignore unavailable to you. Want to Upgrade?


To: OX who wrote (1083)1/27/2000 12:31:00 PM
From: OX  Respond to of 1235
 
just one minor correction...
i believe the new 10% rule is 10% of the strike, not the underlying. duh!

all margin %-ages is in addition to the prem rec'd



To: OX who wrote (1083)1/27/2000 10:33:00 PM
From: KFE  Read Replies (1) | Respond to of 1235
 
OX,

Naked equity puts minimum margin: 10% of strike price plus 100% of current value of put. Its the 100% of current market price that will kill you if it starts moving against you. The old rule never made sense.

If you are interested in the evolution of the margin changes you can find them here:

frwebgate.access.gpo.gov

Regards,

Ken