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


To: Tim O. who wrote (1169)4/10/2000 9:21:00 AM
From: Tom K.  Respond to of 1235
 
... i need some help in figuring out free cash....

Tim, you're testing my margin knowledge (not a lot there).

The basic answer is yes, your stock can be used as collateral.

I believe that some brokers include the premium value as collateral requirement as well so that would not be free cash. However, having the $10K of stock covers the collateral requirements, so I compute the free cash as being $11,000.

For a real answer, best check with your broker.

Tom