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To: jgercke who wrote (10746)	11/23/1997 6:27:00 PM
From: Glenn D. Rudolph	Respond to of 45548

The point being that witing naked puts which move against you can result in immediate additional margin requirement; writing covered calls does not result in additional margin unless the stock price violates maintenance levels. Usually that requires 30% equity (as compared to the 50% equity to purchase), although many volatile stocks have higher house maintenance levels. jgercke, The position being a written naked put leaves your account in cash. You are correct that the naked put is market to market each night. True also for long shares but not the covered calls since they are covered. The 30% requirement for the long shares is the minimum equity permitted by the SEC. Somre firms require more as you pointed out. The minimum equity for a naked put is 20% of the strike price less the premium received plus how much the put is in the money. The strike price is fixed and so is the premium but the amouunt in the money is not. You will find if a brokerage house uses the SEC minium, the required equity for a naked put will always be lower than for a convered call position. Glenn