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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (6241)	12/29/1997 5:32:00 PM
From: VincentTH	Read Replies (2) \| Respond to of 14162

Herm, My first post, so bear with me. I would like to find out what are the Margin requirements for Naked Puts and Bull Spreads at various Discount Broker houses? I have an account with Waterhouse but my calculations using the Federal formulaes for Naked Puts are way off. What I am trying to do is to do repair for a battered stock trying to buy 4 Jan25 calls @ 2 and short 8 Jan27.5 calls @ 1 1/16. I owned 400 shares of the stock of course (SMOD) with a NUT of 29.40 and some. Waterhouse would not let me do it, saying I don't have any buying power left, but I do have $1000 unused cash. I believe the Naked Puts have maxed out my margin (according to Waterhouse), but my calculations have some $5000 margin left (Max(20% stock +..., .10 stocks + premium etc...)

To: Herm who wrote (6241)	12/29/1997 8:56:00 PM
From: Hunt	Read Replies (2) \| Respond to of 14162

Herm, At one time, I think you mentioned a formula that would tell when to buy back a covered call and roll out to the next month. I currently have sold the Jan 22.5 calls on CREAF and am thinking about rolling out to February either the 20's or 22.5's. (My cost basis is 20.27) If you could post an URL to the formula or take a look at this idea, it would be appreciated. Thanks Randy