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

To: Mohan Marette who wrote (99037)	2/13/1999 11:50:00 PM
From: Yamakita	Read Replies (1) \| Respond to of 176387

OT Simple options question: Can someone please explain what happens to your margin buying power when you write a put? Let's say I have $100,000 in options buying power, and believe the recent selloff in Dell is overdone, and wish to capitalize on excessively bearish sentiment by writing some puts and collecting the premium. Let's say I write 10 contracts on the Dell March 90s, for a premium of $9. Is $9,000 actually debited into my account, giving me a new margin buying power of $109,000? Or does all my buying power now disappear, since I am responsible for purchasing 1,000 shares of Dell common if the price is below 90 at expiration? Thanks in advance.