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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: James Joyce who wrote (10839)	5/18/1999 11:21:00 PM
From: Roman S.	Respond to of 14162

Very much appreciated, James. The brokerage told me very quickly how to figure out the margin requirement for the naked puts, and I think it is similar to a previous post, 30% of the underlying stock value at the strike minus the amount it is out of the money and something or other. I will call again tomorrow to verify again and write it down this time. I am very bullish on the stock, and the next series available on it is in August, and they aren't big money right now, but the puts are more expensive than the calls for the same strike. That's why I figured that the best way to win would be to sell the naked puts and buy the calls. Get the premiums in my pocket from the puts and the calls will increase in value as it goes past the strike. Maximum gain on a bullish move.Actually hoping in the near term that the stock retreats about 1/2 point so I can buy more calls for the money and get a better premium for the puts. Just an amateur in options playing with less than $1k to experiment.