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

To: GVTucker who wrote (104254)	2/23/1999 3:17:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

re: available margin to buy stock.... agree you can use available margin to buy stock...but you are borrowing funds, paying interest, and should the stock drop, perhaps meet a margin call....out of ignorance, how does getting cash in by selling a put give a cboe trader free money? i think it reckless to use margin to go long...can turn against you immediately on a day like 10/8/98...whereas put positions can be restructered swiftly without loss of position...and most times with a benefit of cash in.. agree theoretically about your return on capital...but in reality borrowing against margin is tangible to your account with a definite maintenance liability...selling puts against margin capacity does not have the same effect...cash in can be invested.... please explain i receive $1000 from a put, purchase $1000 of stock with proceeds....net gain $1000 long stock, $1000 put liability which should be a depreciating value, versus borrow $1000 which becomes an increasing liability and buy $1000 long stock...i'm open how does the put seller incur more risk and give a cboe trader free money...always willing to learn the error of my ways...ed a.