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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: rgammon who wrote (11202)	5/23/2000 4:01:00 PM
From: rgammon	Read Replies (1) \| Respond to of 18929

RE: AIM using Options 6/3 or Leaps I carried this thought exercise a bit furthur and realized that the use of AIM with these options, particularly with both Puts AND Calls at the same time is at first glance, a WONDERFUL idea. There just HAD to be a fly in the ointment, and I think that I have found it. Many brokers are uncomfortable with anything other than covered calls, so the purchase of what turns out to be a straddle, raises cries of alarm. I checked with my Merrill Lynch team, and they (the Compliance Officer) frowned on this idea. I still believe in the concept, even if I will only be permitted to implement 1/2 of the idea (the self-funding nature of the paired puts/calls does not appear to be permitted with my existing Merrill Lynch account).