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To: Didi who wrote (114)6/12/2000 8:45:00 PM
From: PAL  Read Replies (2) | Respond to of 1115
 
Minimum Margin on Short, Uncovered Puts. The minimum requirement is now calculated using the exercise price of the put rather than the current market value of the underlying .

This is new to me. The brokerage firms I will with (Brown and Co and TD Waterhouse) are still using the current market value. I have to check tomorrow since this changes the parameters for uncovered puts, especially Deep In the Money Puts.

Edamo, Rose Campion, Tom K ... would you please with your broker whether they have implemented this new rule?

Thanks for the information.

Paul



To: Didi who wrote (114)6/13/2000 1:02:00 PM
From: AmericanVoter  Read Replies (1) | Respond to of 1115
 
"Minimum Margin on Short, Uncovered Puts. The minimum requirement is now calculated using the exercise price of the put rather than the current market value of the underlying."

this is news to me... in effect, buying the underlying will tie up less funds than selling deep ITM LEAP puts...!!! another way of saying only professional brokers are allowed to sell PUTs since most of the time they have their own regulations...

regards
amein