Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sonny who wrote (58341)	2/23/1999 7:45:00 AM
From: Michael Ohlendorf	Read Replies (3) \| Respond to of 58727

Could someone here tell me please what the official exchange margin requirements are to sell uncovered tech stock calls and puts on companies such as MSFT, DELL, INTC, AOL, YHOO, CSCO , LU, IBM, etc.. ? Could you also point me to a Web site where I can find this information. I am planning to write some uncovered calls/puts for the first time and would need this information urgently. Also could you tell me what happens if after the call/put is written the price moves against you and the buyer of the calls/puts I wrote decides to excercise the options. Do I have to buy the stock then to cover or do I simply have to pay in cash the difference of money I am in the red with my position (lets say I wrote for $2 and it has moved against me to $4 - so would I have to pay the buyer the $2 difference or would I be forced to buy the stock - I assume I do not have to buy the stock since this would require a lot of capital one would always have to have available considering that a few contracts already equals a lot of stocks). Many thanks for any advice from more experienced option traders.