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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (86992)	12/26/1998 1:29:00 AM
From: PAL	Read Replies (1) \| Respond to of 176387

Hi Apratim: Yes, I am using part of my available margin: Message 6975125 I have to be careful of not getting a margin call. The temptation of doing it with CSCO is that it is coincidence that one put of a strike price (100) covers the cost of one call of the same strike price. I just take advantage of that. While quickly glancing the option price of DELL, I notice that one Jan00 75 put is not enough to cover one Jan00 75 call unless Dell drops a couple of points next week, or do it at different strike prices. Regards Paul

To: BGR who wrote (86992)	12/28/1998 12:57:00 PM
From: PAL	Respond to of 176387

Apratim: This is the info I got from my broker this morning: Margin requirements for selling naked puts (probably the same from selling naked calls): If the stock is out of the money, the cash requirement is $ 2,000/contracts for stocks selling $ 50 or higher, and $ 1,000/contracts for stocks selling less than $ 50. If the stock is in the money: the cash requirement is 30% of the underlying price PLUS the cost of the option. Therefore, I am hoping CSCO will be out of the money soon. Regardsa Paul