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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (2527)	2/9/2000 10:20:00 AM
From: edamo	Read Replies (1) \| Respond to of 8096

greg...puts v calls absurd? "buy call no margin just cash".....but does this not diminish your margin capacity, as you have exchanged cash which has the greatest marginability for an entity that has zero marginability. if your portfolio is all long calls you have zero margin. if you sell puts you still maintain margin capacity...and cash to invest in government securities. any advanced option strategy incorporates the use of margin capacity (not margin borrowing) to enhance returns and gain leverage. so where is the absurdity?