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To: VisionsOfSugarplums who wrote (14338)7/16/2010 3:20:13 PM
From: tyc:>  Read Replies (1) | Respond to of 23087
 
Don't you think the higher IV in the PUT than in the CALL, indicates the bias you expect to see ? (To me, it seems to make selling the put more desirable.... I'm tempted to buy the corresponding cheap call).



To: VisionsOfSugarplums who wrote (14338)7/17/2010 7:17:25 AM
From: tyc:>  Read Replies (1) | Respond to of 23087
 
About the margin requirement of short puts.

In addition to a percentage of the price of the underlying, 100% of the premium of the puts sold is required. But at the time of sale, that same amount of cash goes into your margin account as proceeds of the sale and therefore contributes (100%) to available margin. Is that correct ?

There's a line of advice in Othello. Did the bard have naked put-writing in mind ?

Put money in thy purse !