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To: Jon Siegel who wrote (9721)11/14/1997 3:16:00 PM
From: Rodney Lockhart  Respond to of 25960
 
you can write covered calls against stock bought on margin.



To: Jon Siegel who wrote (9721)11/14/1997 3:55:00 PM
From: IMPRISTlNE  Respond to of 25960
 
Then sell double that number of calls at a higher strike price

NOT A GOOD STRATEGY>>>>>>>at this time.......



To: Jon Siegel who wrote (9721)11/14/1997 8:20:00 PM
From: Zeev Hed  Respond to of 25960
 
Jon, most brokerage house will let you write covered options on the stock you have in a margin account, actually, they often decrease by the premium the amoun required to back the stocks in the account. Of course, if your net worth decline below their limit, then they force you to liquidate some positions and they will not let you ride a naked option unless you have excessive coverage for it (naked because your force to sell the underlying equity).

Zeev


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