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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (694)	9/23/2002 12:59:27 PM
From: tyc:>	Respond to of 1064

Thanks again Dan. To me this is an interesting subject. Forgive me if it is of no interest to the thread. It has always been my understanding that if a short option is exercised, one's margin position will not change. From the point of view of the broker, it wouldn't make much sense to require a lesser amount of margin for a short option position that could be exercised at any time, resulting in an immediate margin call. If my understanding were correct, then the margin requirement for the short put would be the same as for the exercised short put (i.e. long the stock) which is the same as for the covered call.