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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: Douglas Webb who wrote (7584)	6/10/1998 1:34:00 PM
From: RayV	Respond to of 14162

Doug I've noticed one major danger with stock in this price range. In your first case, IFMX is below $5. When a stock gets that low it's in danger of not being marginable. If it dropped to $4, for example, my broker wouln't consider it marginable which would pull down my overall margin situation, creating margin calls, possibly even if everything else was doing okay. I've been caught a couple of times like this and I'm beginning to think I need to use stocks of higher quality (like TECD and ROST for example). Just a thought. Ray