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Margin requirments ARE NOT cash outlays. I write all positions against paid-up marginable securities so all cash-on-cash returns are 100% accurate.
Jun 06 07:12 am
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All Comments by Paul Price »'Take Off' with Boeing Option Combination Plays [View article]
Option sellers actually earn money on premiums received. There is no 'cost of capital' on option sales. There is an 'opportunity cost' in terms of tying up buying power.