That's a good question for Linda Raschke...I'll give you the quote from her interview. "When I sold the options, I knew I would be okay as long as the stock didn't go over $55.00. Unfortunately, the stocked jumped from $34 to $65 on takeover news. Suddenly, I discovered you could lose $80,000 overnight." The New Market Wizards...pg.298
Same for you, (I'm not going to waste my time) just go sell your 125 options. Just don't say you weren't warned.
On the vast majority of stocks, short 3 puts cannot lose $50k under any circumstances whatsoever. Perhaps your lengthy experience trading options will allow you to explain to us why the broker would demand more collateral than the maximum possible loss?
Will someone please close this thread, it is now becoming completely gay and useless. Get this crap out of here. Trash talking is for chit chat. You guys can measure your cocks over there. LOL.
Right, unfortunately we're talking PUTS here, chief. I think we're all familiar with basic arithmetic and the risk of selling naked gamma. riskarb
She was writing naked calls,which is something i would never do.But selling puts on stocks that you wouldn't mind owning at the strike price,if you were assigned,seems like a great and simple strategy.
Homophobe! For the life of me I cannot find the cock-measuring thread you're referring to Maverick, please post a link ;-) riskarb
Finally, someone who post in a mature way. Like I said, it was just after the crash of 87, and a lot of brokers got burned big time. I haven't traded options in about 15 years, so I'm sure margin requirements have changed, but I just find it hard to believe a broker would let some guy sell 125 puts with $50,000. If you can, then yes, things have really changed. But, as you can see from my L. Rashke quote, you can get burned big time holding a large position. I believe she only had $30,000 at the time. Of course, with electronic monitoring of accounts now, it may be perfectly okay with brokers to allow that large a position. Since, the computers will close everything auto, 24 hrs a day.