I think we have a misunderstanding. When you sell to open a put position you can allow the put to expire worthless as long as the underlying stays...
Or if the put is stupidly expensive as they can be and the iv off the chart; often prior to earnings. For this to work you are approaching...
My math is based on the minimum CBOE 20% - my broker is 25%. I understand the minimum margin requirements and also understand it can go up...
http://www.cboe.com/tradtool/mcalc/default.aspx Well if I wanted to short 50 May 130 puts on MA ~ .30 and the underlying at 171 I'd need min...
Clearly a lot of cash is required to short puts. Even in the example of YHOO, if you were shorting the May 14 puts at .45 ~ it looks like you...
At the current price of .44 for the May 14 put ~ the margin requirement for shorting 10 puts would be $3510. And they do not use cash collected...
Thanks itembonds and others; just covering my math. Appreciate your indulgence and cautions - absolutely agree this naked puts not for everyone....
I understand the risk far too well. But I also see the potential if managed properly. I'm interested in the meat and potatoes of fees associated...
thanks itembonds, so not many brokers let you do naked puts for low margin on the underlying I am sensing. For some reason the figure 20% was in...
my post was based on this article:...
First off, great site - been lurking for a while. I have a question please and hope it is easy to answer. If I shorted 500 contracts of YHOO...
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