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Non-Tech : Cityscape Financial (CTYS) -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (1312)	10/22/1997 4:23:00 PM
From: Allen Furlan	Read Replies (2) \| Respond to of 2544

You might find the puts thread interesting. Initial margin on these puts is just 20% of stock price or about 52 dollars per put. Add the option value $287 but that money is already in account. The total margin requirement declines as the stock rises and option premium falls. Should stock recover to 5 in January the theoretical annual yield would be 287/100 times 4 annual turns or 1100% The margin cost of 100(20% times 5) actually declines should the stock rise above 5 because at 5 5/8, margin would only be 10% or 56 dollars plus option value which is of course less than initial proceeds. No way do I believe stock will go above 3-4 in next 3 months, but theoretically at least, potential annual yield on these low priced stock options is very good should you be able to diversify into many situations. I believe you were on aksef thread and I played that one for about 6 months at different entry points.