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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: David Wright who wrote (10907)	5/25/1999 12:59:00 AM
From: VincentTH	Respond to of 14162

Dave wrote: The big difference for a margin account is that a LEAP cannot be used as collateral to underwrite more buying power I believe we all know that. The point I am trying to clarify is that there is no difference between establishing a spread and legging into a spread, be it short term call against LEAPS (calendar spread), or calls having the same expiration date (vertical spread). For the 2, the margin requirements are the same, i.e. depend on the brokerage house. Some requires margin, some just treat debit spreads as CC, i.e. no margin required. Most online brokerages would not allow spreads in IRA accounts, however. The only one known is Greg Higgins's broker. My 2 cents,