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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?


To: Herm who wrote (13756)7/7/2001 1:58:46 PM
From: TimF  Read Replies (1) | Respond to of 14162
 
Sure, you could that if you had too. It does require a great deal more capital to make it happen.

If it does it shouldn't. If you can buy $10000 worth of stock with $5000 (buying on margin) you should be able to write options at strike prices that force you to pay for $10k worth of stock with at most $5k of cash as a reserve. You should be able to include the premium towards that cash and it shouldn't be difficult to get the rights to do this. After all you could put in a GTC limit order to buy $10k of that stock at that price, without even recieveing the premium.

Tim