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.

Technology Stocks : Safeguard Scientifics SFE -- Ignore unavailable to you. Want to Upgrade?

To: michael r potter who wrote (2839)	5/14/1999 10:47:00 PM
From: Gary Kao	Read Replies (1) \| Respond to of 4467

Isn't that one form of margin as well? I don't claim to have the prowess of a hedge manager (even tho' their reputation has taken a massive tarnishing thanks to LTCM), for the past two years I have sold puts against massively long positions of equities and thereby raised substantial amounts of cash --and not gotten killed by the bull market in the process. The risk is quite manageable. This takes a huge amount of margin, the calculation of still defies me, I have yet to have a margin call with this kind of strategy, altho' from previous experience I know the terror that kind of call brings... Gary > Do you mean using the buying power in a margin account [that doesn't have a debit balance] and using the securities as collateral to sell puts and calls? Could you elaborate on the safety factor?