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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 (8187)	8/11/1998 2:33:00 PM
From: mc	Read Replies (2) \| Respond to of 14162

Hello Herm & everyone, I have a question about selling puts. I tried to sell a few puts this morning on a stock. If the puts were to be exercised there was more than enough cash in the account to cover the purchase. My broker told me that it was still considered an uncovered option and that I had to meet certain minimum balance requirements ($25,000) before they would let me do that. 1. Is this really an uncovered position? I didn't think that it was since the potential liability is fixed and cash is in the account to cover it. I understand if it were a call and the liability is theoretically unlimited, but, with a put this is not the case. 2. Has anyone else run into this or do you know of a broker who allows this kind of trading and does not consider it an uncovered position? Thanks, Gary

To: Herm who wrote (8187)	8/11/1998 4:47:00 PM
From: Deep IntheMoney	Read Replies (1) \| Respond to of 14162

Hi Herm & Gang, I have been following this thread for quite a while as a silent lurker!! and I want to congratulate you all especially Herm on this excellent work!! I think I am a good learner so I gave me a name after WIN so I don't forget the basic concept!! CPQ is still looking for direction....I had been waiting quite some time to get filled on an in the spread buy order for the OCT put on Etrade. I did this because the stock was on a downtick on my realtime quote and thought maybe I could do a 1/8th better. I waited for a 20 minutes an then I saw the bid change sometime later I got filled. I thought, in the spread option orders don't get to the trade floor at least not with deep discount brokers. Anybody know how its done with these brokerages? thanks again!!! Deep