Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (106805)	4/19/2000 11:56:00 AM
From: chic_hearne	Read Replies (1) \| Respond to of 1574605

Re: You say level 3 requires a margin account and a large equity balance. What qualifies as large? Tim, $25,000 minimum at the firm I use. chic

To: TimF who wrote (106805)	4/19/2000 12:07:00 PM
From: Kenith Lee	Respond to of 1574605

The SEC requires all brokerage firms to inform the investor with all the risks that associates with option trading. Your broker is require to hand your one and advice you to read it before submitting the application. No one will "physically" be there when you are reading the book. For level two, it will take weeks if you do not have any option trading history. RE: Large This only applies when you write naked options (underlining stock or index). I don't remember the rules. It is something like certain percentage of the strike price plus the option price minus the amount out of money (plus if in the money). Index has higher percentage requirement. I have not wrote naked for a long time. It is too risky because the liability is unlimited where as buying options is limited to 100% of the price you paid.