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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (54676)	10/3/1998 11:42:00 PM
From: Darth Trader	Read Replies (1) \| Respond to of 58727

Linda, consider Credit Spreads, do not require as much margin, the risk and profit is limited. Message 5889410

To: Linda Kaplan who wrote (54676)	10/4/1998 3:57:00 AM
From: AlanH	Read Replies (1) \| Respond to of 58727

Linda,re:Fed Minimum Do you mean an extra $25,000 in cash (options) buying power is necessary to initiate a spread in the indexes? or just $25,000 in equities in the account? As I understand it, "cash equivalents"... equities don't cut it 'cause they can be had on margin also. On the bright side, you should get paid 3mo treasury rates on the requirement. I haven't even been able to figure out where the stock comes from when I write puts and am assigned and have to buy the stock. It makes me feel like I'm contemplating my navel when I try to unravel that. Yeah, I'm with you... I try to keep the navel as shallow as possible. First time I dipped a toe into index options, I was quite surprised to see buying power "disappear" when I tried the usual stunts. A similar trip: play an intermarket spread, and get pulled by someone exercising when you cannot. (Bactine doesn't help.) Good Trading, Alan