Margin on Options Flashcards
Initial margin to sell naked options
20%
Minimum margin to sell naked options
10%
Initial margin on long options
100% of premium
Initial margin on LEAP options
75% of premium, 100% if within 9 months of expriation
Are there any margins on covered option positions?
No, margin paid with the covering security
Margin for option spreads?
Always the maximum loss
Margin for debit option spread?
Total premiums
Margin for short option spread?
Difference in strike price - net premium
What is the minimum account equity to qualify for using portfolio based margin rules?
$100,000 for individuals
$5,000,000 for institutions
Can a customer sell a put in a cash account?
Yes, if the maximum loss (strike price - premium) is deposited
Does FINRA or the CBOE need to specifically exempt a customer account to qualify for portfolio margins?
No
