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

To: TimF who wrote (1455)	7/12/2001 1:56:42 PM
From: Dan Duchardt	Respond to of 5205

Tim, It's quite easy. You need to get approved for a combined stock/options margin account, and just about anyone can do that. There is no distinction based on option approval levels. If you get the account you can use any and all option strategies. The minimum account size is $2000. interactivebrokers.com Backing short puts with 100% cash is not necessary, but of course you can manage your account to keep your puts cash-backed. If you wish to be more aggressive, margin requirements for short puts are the premium you collect plus 20% of the stock value, less any amount the put is OTM, down to premium plus 10% of stock (or $250). Not recommending you do that, but maybe you want to keep your cash somewhere else besides your trading account. Dan