Turned out, with etrade you can do this with a regular account.
That is, don't need to get the Portfolio Margin account.
You need to discuss this with the etrade Options Desk/Derivatives Desk - and they will do the whole transaction for you.
I have not done it yet, but that is what I have...
Yes, I have a margin account on etrade. But that alone will not suffice.
Have heard back from etrade.
It seems on etrade they offer a "Portfolio Margin" account where you COULD do such things - basically reduced margin requirements. Minimum equity of $100,000 to be maintained at all times...
Although, come to think of it, one would think the market makers would have automated programs to do EXACTLY the thing I have mentioned above - i.e. if someone wants to sell their call option then to ALWAYS be ready to buy the option (maybe at slightly less than "intrinsic value") so they can do...
I think I may have made the mistake of posting in the "First Post" forum:
http://www.trade2win.com/boards/first-steps/149696-selling-call-options-illiquid-options-market.html#post1847916
Since my question is specifically about options, I am re-posting it here now with slightly better...
Or is it pretty easy to get at least the "intrinsic value" when selling options - or can it happen that market makers stay away with nobody willing to buy even at "intrinsic value" even ?
I have a number of call options in a stock which I expect to go up in coming weeks.
Expiry is in a couple of months.
My intention is to eventually sell some of the call options - and use that cash to "exercise" the rest so I have some long term holdings of the stock as well.
I have figured...