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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: VincentTH who wrote (9731)	2/24/1999 7:57:00 PM
From: NateC	Read Replies (1) \| Respond to of 14162

<<The margin for a box is only 5% at Waterhouse. I believe m.r. for box would be mostly in that area at other brokers. Assume that you bought the stock at 50% maintenance margin, shorting against the box improve your margin availability by 45%, not decreasing it.>> Vincent...I'm a neophyte to shorting....and frankly I'm a little afraid of it, because of squeeze...not knowing enough, etc. If you had sold puts on a stock...which headed south....say you owned 1000 shares of XYZ at 93.....and you sold the 90 March puts........ (or even if your puts were naked)....can you explain a little about what happens when you go short. If you have sold 10 contracts of March 90 Puts...and the stock goes to 87, let's say.....If you go short 1000 shares.....what happens if the stock starts back up, stays the same, and goes down?