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


To: tyc:> who wrote (983)4/17/2004 9:16:42 AM
From: Dominick  Respond to of 1064
 
That makes sense. I forgot about margin.



To: tyc:> who wrote (983)4/18/2004 3:03:28 PM
From: Bridge Player  Read Replies (2) | Respond to of 1064
 
<<I think the answer is; if you have sufficient margin to support sold puts, you have sufficient margin to support the stock if it is put to you. >>

It's my understanding that the margin to sell the puts is only 25% of the strike price, plus in-the-money amount or minus out-of-the-money amount. With some minimum. At the time of the transaction.

Margin to support the purchase if assigned could be greater than that, no?