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To: margin_man who wrote (4124)8/28/1998 9:26:00 AM
From: Norman Klein  Read Replies (1) | Respond to of 9236
 
That's interesting, because this occurred while I had an account at Schwab and they informed me that it was a NASDAQ rule and they had no choice but to comply with NASDAQ guidelines.

They could have been lying though.

<<Some will sell
to get out of the position. Some will hang tough and hope it
bounces back a day before the due date.>>

Yes, but most brokers will try to force you to sell twice the amount of the call to satisfy it.

Anyway, if the market continues to deteriorate to such an extent that we get to that position, I think that meeting margin calls will be the least of our worries.