Years Ago in the Options Market
Years Ago in the Options Market
It might be interesting to the reader at this point, after reading so much of the techniques of the option business, to know something of years ago. When I first came into the option business forty years ago, and up until about the time of the big break in 1929, the holder of an option could trade against it with no margin. His broker had to have coverage for just the commissions and interest and any market difference. Often I had Puts on 500 shares against which I would trade, back and forth, as many times as the swings in the market would allow; margin was not necessary because the option, guaranteed by a member firm of the New York Stock Exchange, was sufficient margin. Not so today, however. Today all stock commitments must be covered by the required margin and the option is not a substitute for such margin.
