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To: edamo who wrote (153316)2/8/2000 3:49:00 PM
From: SecularBull  Read Replies (1) | Respond to of 176387
 
Let make sure I understand you... You're saying that buying a call ties up more margin that selling a put?

Is this what you are saying?

LoF



To: edamo who wrote (153316)2/8/2000 3:59:00 PM
From: Ian@SI  Read Replies (1) | Respond to of 176387
 
EdA,
Well said!

I'm currently short PUTs which, if all were assigned early, would require more than $1M to pay for the shares. I haven't done a precise calculation lately, but last time I checked, much less than $100K of margin was tied up.

None of the PUTs are in the money any longer, so the risk of early assignment is near zero

And with one exception, I've sold PUTs only because I was so bullish on the stock that I was certain I'd get to keep the premium. The exception was MRVT. I sold the Dec 10s hoping for an assignment, early or otherwise, after the QLTI FDA subcommittee decision came out. Fortunately, I got assigned; and now have a 3-bagger. (cost basis is $8.50)

Ian.