Option Millionaires

[boca_bobby]

It looks like your talking about selling 100 Put contracts to finance your call contracts.

OK, if this is true most brokers say you must have enough capital in your account to cover those Puts if the trade goes bad. So here's what I see:

Sell 100 $20/Puts

Each contact is for 100 shares

100 X $20 = $2,000

You sold 100 contracts

$2,000 X 100 = $200,000

This means you would need $200,000 of free cash in your account to just pull off the trade. Am I reading this correctly?