Minimize cost/Maximize Profit

Discussion in 'Options' started by Wilt, Dec 17, 2010.

  1. rew

    rew

    As others have pointed out, I'm sure they sold a call, not a put, at 105. Since this position has a naked put at 85 the true cost of the position must include the margin requirement of about 11.65*. So while the out of pocket cost is 0.35, the total capital outlay including margin is about 12.00.

    * Your broker's margin requirement may differ.
     
    #11     Dec 19, 2010