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Technology Stocks : Full Disclosure Trading -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (6919)	10/6/2003 12:14:32 PM
From: Sam Citron	Read Replies (1) \| Respond to of 13403

OT I would have to keep the $110,000 in reserve for 1.5 years. So really that has to count in calculating the return. Sarmad, I rarely buy on margin so I generally have excess buying power in my account. The short position in the puts merely uses some of this excess buying power. But the opportunity cost for me is zero and it does not consume cash, so I think it is a fallacy to count it in calculating the return. If you normally carry a debit balance in your margin account, however, there would certainly be an opportunity cost and it would probably consume cash as well. The best way to figure out the impact is to have a margin clerk walk you through it. Sam