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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Math Junkie who wrote (48651)	7/2/2001 9:43:46 PM
From: Jerome	Respond to of 70976

Richard,.... Your situation is different from what I have run into before. I would call E-Trade and try to get approval for buying Leaps. If they do not approve then I would move the account somewhere else. But I would not move the account until I got prior approval to do options and leaps somewhere else. (Try Fidelity, or Schwab) I will think of a strategy for covered calls. I have to check some numbers before I give you the exact details on what I would do. I'm glad that you asked about a strategy because most of my option postings draw almost no response. Or maybe just a big yawn. I will put up a posting tomorrow concerning your situation. I would like my responses to be specific (price, time etc) so that it is more usable by the thread followers. Thanks, Jerome

To: Math Junkie who wrote (48651)	7/2/2001 9:50:07 PM
From: Ian@SI	Read Replies (1) \| Respond to of 70976

Richard, My broker started me off with naked writing permission before I knew how to spell OPSHUN correctly. If you want to have full option privileges much more than you want to have any net worth whatsoever remaining, just tell the broker that you're a sophisticated investor (usually you have to have more than $0.5M with that broker to make that definition stick; that your investment strategies are aggressive, high risk high growth, and that you have several years option experience. You may also have to convince the broker that you know that you can take an early assignment on any options that you write. And if you do get full privileges, pray that you don't discover that one thing that is worse than only being able to write covered calls is being able to write naked anything.

To: Math Junkie who wrote (48651)	7/2/2001 10:05:49 PM
From: Tito L. Nisperos Jr.	Read Replies (1) \| Respond to of 70976

Richard, RE "... that option beginners are only allowed to write covered calls ..." That's the same problem others in this Thread had before. I gave a little advice before and apparently that worked. Re-apply to have capability to Buy Calls and Puts aside from Writing Covered calls. Here's how: --- In the application form you have to select between 2 boxes labeled something like "Speculation" and the other "Income" whatever is your Objective in Options. if you select "Income" --- then you are approved only on Covered call writing. If you select "Speculation" then you can do more. Of course assets (liquid and others) must be at least $50,000 each --- the more the better. It helps to Call them if it takes longer for them to approve your application.