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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: marcos1 who wrote (999)6/11/2001 9:26:48 AM
From: smchan  Respond to of 5205
 
Hmm... I don't know. In my IB account, the premium is deposited right away. However, I think enough margin is also held out to cover the short position. (Will have to double check that last statement.)

Grub. :-)

Sam



To: marcos1 who wrote (999)6/11/2001 10:01:08 AM
From: Uncle Frank  Read Replies (1) | Respond to of 5205
 
>> I was wondering where the original premium went and when I can actually use it to buy more stock with.

The original premium goes directly into your cash/money market funds (or as an offset to margin), and is available for immediate use. The negative value of your short calls is not regarded as a margin liability, since the transaction is secured by your long position in the underlying.

duf


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