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To: VisionsOfSugarplums who wrote (14333)	7/16/2010 12:44:19 PM
From: tyc:>	Respond to of 23087

Thanks toowit. It seems you are saying that TCM margin requirement is only 20%. My broker requires 30%, I was wrong when I used 50%. >>"If stock goes to $7.00 and put cover cost $6.50: Maintenance Margin: $3160" I presume this says that if the stock falls to $7, the option premium will be ~$6.50. Margin required would be $6.50 + 20% of $7 = $7.90 * 400 = $3160. Ah! that's just what you said it would be. Eureka ! Thanks for the clarification, toowit ! The essential point is that no cash outlay is required for this bullish position, only sufficient available margin.