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To: Jim Willie CB who wrote (7844)	3/16/2000 7:42:00 PM
From: Didi	Read Replies (2) \| Respond to of 35685

"Margin Requirements for Options"...by ArchAngel, THE OPTIONS PRO on RG: (thanks much, Arch.) "first they need to quickly deposit whatever amount is called for in the Fed call or they'll be locked out and possibly restricted. Short puts require an initial margin of the premium received plus the greater of (20% of the stock price less any out of the money amount) or (10% of the stock price) or (20% of the strike price). Maintenance margin is basically the same except that it's the mark to market valuation of the option premium not just the premium initially received (so if the stock price goes down, you'll have to keep posting more margin). The required margin doesn't depend on whether you're long the stock (unlike a short call - being long the stock provides no cover for a short put). Although any marginable equity available in the long stock position can be used toward the margin requirement of the short put."