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I don't write naked puts. However, I do short stocks and write puts against the short stock. This combination is a "covered put write". It is synthetic to a naked call write. I don't have a problem with this synthetic naked call write. I don't need a stock that is going to go down. I...

Newguy, if you had been long the stock, you could have exercised your long puts, thus closing out your stock position for the strike price. However, the problem is that the SEC won't allow you to exercise a put option which would create a short position in the stock of a company whith is on...

There are still plenty of stocks left to short.

GTS, the bailout package you are referring to, relatess to executive compensation. That's a separate issue. I was speaking about the overall takeover. Last time I looked this was still the United States of America, and the Constitution was still in place. 4Q

WTF...I'm not the brightest bulb on the shelf, but I have two questions. 1. How the hell can the Fed take over Freddie or Fannie without Congressional approval? 2. Even with Congressional approval, what about the Fourth amendment which contains provisions against searches and SEIZURES?

Why not insure these "naked" puts with a low premium (high copay) long Puts? 4Q

Penozi, thanks for the precise and clear explanation.

Can someone please give an example of a Double Calendar and a Double Diagonal? Thanks. 4Q

Both are good. Where the hell is it written that you can't have an account at each?

When it comes to any security I never assume anything. I know for a fact that the underlying stock can only go up, down, or sideways. I have a plan for each of these eventualities and review and udpade my plan on a regular basis. Remember what JP Morgan said many years ago when asked what...

Atticus and Nanook: If you are asking if I do covered call writes and covered put writes at the same time on the same underlying stock, the answer is NO. Matter of fact, I presently don't have any open covered call writes. I was going to do one on GM...buy 200 shs and short 2 August...

Here's my take on it: 1. Take the $50,000 and purchase a good mutual bond fund. Look for good management and a good track record. You may, or may not, wish to do the dividend reinvestment election. 2. Sell covered Puts. That is short stocks and sell Puts against them. I look for...

I don't know what the margin maintenance requirement is. But a bigger question is: How will your margin interest charge be computed? This one I can answer. Your margin debt is the daily net balance of the excess of your short stock value over your available cash at the end of the day. This...

I use Optionetics Platinum for this purpose. For me, at least, it works well.

On occasion, I do a variation of OTM uncovered calls. I do it synthetically: short the stock and write a deep in the money Put. The proceeds from the sale of the put do not bear any cost to carry and can be placed in a debt instrument, thereby earning a modest amount of interest. This would...

dmo, I've never dealt with IB. Upon reading your posting I went to the Schwab site and tried to place a short stock order on USO. Not surprising I received the Hard to Borrow Notice. They do have an 800 number for their "Securities Lending" department. Also, I have some open short...

DMO, another interesting posting from you. I know you are accurately stating your experience. I wish I had a good answer for you. I will tell you that I short stocks using online trading through Schwab. They are always responsive when I have a question or a problem. One thing that used to...

DMO gave an excellent and accurate description of the synthetic aspects of this. Only thing I would add is that I find that I can more easily roll and adjust using this "reverse collar" configuration. I'm comfortable with this becauses I have a lot of flexibility and can even do some goofy and...

MTE, you're right with respect to the dividend. Valid point.

I would hope that you would get at least a telephone call. For sure you should ask this question to your broker and receive a written reply. The situation can get particularly acute if you have a short Put open and you are not cleared for uncovered option writing. That would also require...