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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Yamakita who wrote (13034)	8/21/1998 11:52:00 AM
From: Alexander Pavlov	Read Replies (2) \| Respond to of 18691

This is somewhat off topic (if it is possible to get off topic at this board :o)). I know that there are a lot of experienced people and I need some advise on boxed position. The problem: I kept long position for some time. During one of the run-ups I wrote covered call. Yesterday stock reached break-even level (purchase price less options premium) and I opened short position on the same stock, for my account is not allowed for naked calls and I did not want to buy back options which will expire tomorrow. Today I discovered that my broker considered this as a boxed position and naked call written. Thus my buying power was set to 0, although my account has enough cash (not margin, true cash) to cover that call even if underlying stock price will rise several times before market close today. I would like to know the following. If L is for long position, S for short one and C for call option, then we could treat the combined position in different way, i.e. [(L + C) & S] OR [(L + S) & C], obviously with different outcomes. My question is if there are some regulations which set how to treat the case above. Thanks in advance, Alex