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To: Jill who wrote (118341)4/18/1999 10:21:00 AM
From: edamo  Read Replies (2) | Respond to of 176387
 
jill n(ikita) as in la femme...<ot> margin calls..

you can sell puts and buy stocks with the proceeds, but you cant sell puts, buy stocks, and than use margin....the former gives no margin calls...why because you hopefully sell put at a high implied volatility, buy stock at a low point, they marry and move in concert keeping your capacity most times at or above that point in time...to use margin at a later point in time upsets the balance, especially if it's in an issue that is not part of the "happy union"...too many things going in different directions...

"an army prefers high ground to low, esteems sunlight and dislikes shade. thus, while nourishing its health, the army occupies a firm position. an army that does not suffer from countless diseases is said to be certain of victory"

as in war, as in investing, as in life...you understand! ciao



To: Jill who wrote (118341)4/18/1999 10:41:00 AM
From: freeus  Read Replies (1) | Respond to of 176387
 
ot but not really because its all in the education of options buying, DELL or other.
Dear Jill:
Youranswer (and Edamo's to you) are quite correct. The problem is, of course that I have made much muchmore money out of using margin than I have made from selling puts, but of course I only began selling puts last month and I have used margin for a year and a half so it isnt exactly a fair trial.
I can see that it is using both that gave me the problem. In addition my accountant didnt think I owed taxes and so I didnt "save" cash out power, then on Apr 15 she told me I owed $2000, the market (naz anyway) fell, I got a margin call-false but it will be real enough Mon or Tues if AOL and DELL continue their slide or even stay sideways and the others slide- and I have no money for taxes!!!!
Oh well, its all a game.
Freeus