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Options Margin Requirements

Pricing/Options Margin Requirements


Margin Requirements

(Applies to Stock & Index Options)

Position Margin Account Cash Accounts
Initial1 Maintainence2
Long Call Buy Call 100% Cost of the
Option		 N/A 100% Cost of the
Option
Long Put /
Protective Put		 Buy Put/Buy Put and
Buy Underlying		 100% Cost of the
Option		 N/A 100% Cost of the
Option
Covered OTM3
Call		 Buy Stock trading at
P and Sell Call with
Strike Price > P		 Requirement Long
Stock (marked to
market)		 Requirement Long
Stock (marked to
market)		 Requirement Long
Stock (marked to
market)
Covered ITM4
Call		 Buy Stock trading at
P and Sell Call with
Strike Price < P		 Requirement Long
Stock (marked to
market)		 Requirement Long
Stock (marked to
market)		 Requirement Long
Stock (marked to
market)
Covered OTM3
Put		 Buy Stock trading at
P and Sell Put with
Strike Price < P		 Requirement Short
Stock (marked to
market)		 Requirement Short
Stock (marked to
market)		 N/A
Covered ITM4
Put		 Buy Stock trading at
P and Sell Put with
Strike Price > P		 Requirement Short
Stock (marked to
market) +100% Put
ITM Value		 Requirement Short
Stock (marked to
market) +100% Put
ITM Value		 N/A
Cash-Covered
Put		 Short Put with
enough cash to cover
exercise		 N/A N/A (Strike Price x
Multiplier x
Contracts) —
Premium Proceeds





Naked Call




Short Call

Greater of these 3
values:


  1. 100% of the option
    proceeds + (20% of the
    Underlying Market
    Value) – (OTM Value)
  2. 100% of the option
    proceeds + (10% of the
    Underlying Market
    Value)
  3. 100% of the option
    proceeds +
    ($100/contract)

Greater of these 3
values:


  1. Market value of the
    option + (20% of the
    Underlying Market
    Value) – (OTM Value)
  2. Market value of the
    option + (10% of the
    Underlying Market
    Value)
  3. Market value of the
    option +
    ($100/contract)
 N/A





Naked Put




Short Put

Greater of these 3
values:


  1. 100% of the option
    proceeds + (20% of the
    Underlying Market
    Value) – (OTM Value)
  2. 100% of the option
    proceeds + (10% of the
    Strike Price x Multiplier
    x Contracts)
  3. 100% of the option
    proceeds +
    ($100/contract)

Greater of these 3
values:


  1. Market value of the option
    option + (20% of the
    Underlying Market
    Value) – (OTM Value)
  2. Market value of the option
    + (10% of the
    Strike Price x Multiplier
    x Contracts)
  3. Market value of the option
    option +
    ($100/contract)
 N/A


Bear(Credit)
Call Spread
Buy Call and Short
Call (Strike Price
Long Call > Strike
Price Short Call)
Net Premium + (Strike
Price Long Call – Strike
Price Short Call) x
Contracts x Multiplier
(Strike Price Long Call
– Strike Price Short
Call) x Contracts x
Multiplier		 Net Premium +
(Strike Price Long
Call – Strike Price
Short Call) x
Contracts x
Multiplier


Bull(Credit)
Put Spread
Buy Put and Short
Put (Strike Price Long
Put < Strike Price
Short Put)
Net Premium + (Strike
Price Short Put – Strike
Price Long Put) x
Contracts x Multiplier
(Strike Price Short Put
– Strike Price Long
Put) x Contracts x
Multiplier		 Net Premium +
(Strike Price Short
Put – Strike Price
Long Put) x
Contracts x
Multiplier

Bull (Debit)
Call Spread		 Buy Call and Short
Call (Strike Price
Long Call < Strike
Price Short Call)
Net Premium
N/A
Net Premium

Bear (Debit)
Put Spread		 Buy Put and Short
Put (Strike Price Long
Put > Strike Price
Short Put)
Net Premium
N/A
Net Premium
Long Straddle Buy Call and Buy Put
with the same Strike
Price		 100% Cost of the
Options		 N/A 100% Cost of the
Options



Short Straddle


Short Call and Short
Put with the same
Strike Price

Greater of these 2
values:


  1. Requirement Naked
    Calls
  2. Requirement Naked
    Puts

+ Premium Other
Options

Greater of these 2
values:


  1. Requirement Naked
    Calls
  2. Requirement Naked
    Puts

+ Market Value Other
Options

N/A

Long Strangle		 Buy Call and Buy Put
with different Strike
Prices 		100% Cost of the
Options
N/A		 100% Cost of the
Options



Short Strangle


Short Call and Short
Put with different Strike
Price

Greater of these 2
values:


  1. Requirement Naked
    Calls
  2. Requirement Naked
    Puts

+ Premium Other
Options

Greater of these 2
values:


  1. Requirement Naked
    Calls
  2. Requirement Naked
    Puts

+ Market Value Other
Options


N/A



Long (Debit) Butterfly Call
Spread

Bear (Credit) Call
Spread & Bull (Debit)
Call Spread.

Short calls with the
same strike price. Intervals between
strike prices equal. All
legs with the same
expiration date.



Net Premium



N/A



Net Premium




Short (Credit) Butterfly Call
Spread

Bull (Debit) Call
Spread & Bear
(Credit) Call Spread.


Long calls with the
same strike price.
Intervals between
strike prices equal. All
legs with the same
expiration date.



Requirement Bear
(Credit) Call Spread



Requirement Bear
(Credit) Call Spread



Requirement Bear
(Credit) Call Spread




Long (Debit) Butterfly
Put Spread

Bear (Debit) Put
Spread & Bull
(Credit) Put Spread.


Short puts with the
same strike price.
Intervals between
strike prices equal. All
legs with the same
expiration date.



Net Premium



N/A



Net Premium



Short (Credit) Butterfly Put Spread

Bull (Credit) Put
Spread & Bear
(Debit) Put Spread.


Long puts with the
same strike price.
Intervals between
strike prices equal. All
legs with the same
expiration date.


Requirement Bull
(Credit) Put Spread


Requirement Bull
(Credit) Put Spread


Requirement Bull
(Credit) Put Spread



Long (Debit) Condor Call
Spread

Bear (Credit) Call
Spread & Bull (Debit)
Call Spread.


Intervals between
spread strike prices
equal. All legs with
the same expiration
date.


Net Premium


N/A


Net Premium



Short (Credit) Condor Call Spread

Bull (Debit) Call
Spread & Bear
(Credit) Call Spread.


Intervals between
spread strike prices
equal. All legs with
the same expiration
date.


Requirement Bear
(Credit) Call Spread


Requirement Bear
(Credit) Call Spread


Requirement Bear
(Credit) Call Spread



Long (Debit) Condor
Put Spread

Bear (Debit) Put
Spread & Bull
(Credit) Put Spread.


Intervals between
spread strike prices
equal. All legs with
the same expiration
date.


Net Premium


N/A


Net Premium



Short (Credit) Condor
Put Spread

Bull (Credit) Put
Spread & Bear
(Debit) Put Spread.


Intervals between
strike prices equal. All
legs with the same
expiration date.


Requirement Bull
(Credit) Put Spread


Requirement Bull
(Credit) Put Spread


Requirement Bull
(Credit) Put Spread


Long (Debit) Iron Butterfly		 Bull (Debit) Call
Spread & Bear
(Debit) Put Spread.
Long Call and long
Put legs with the
same strike price.

Net Premium

N/A

Net Premium


Short (Credit) Iron Butterfly		 Bear (Credit) Call
Spread & Bull
(Credit) Put Spread.
Short Call and Short
Put legs with the
same strike price.

Greater of these 2
values:


  1. Requirement Bear
    (Credit) Call Spread
  2. Requirement Bull
    (Credit) Put Spread

Greater of these 2
values:


  1. Requirement Bear
    (Credit) Call Spread
  2. Requirement Bull
    (Credit) Put Spread

Greater of these 2
values:


  1. Bear (Credit) Call
    Spread
  2. Bull (Credit) Put
    Spread


Long (Debit) Iron Condor		 Bull (Debit) Call
Spread & Bear
(Debit) Put Spread.

Net Premium

N/A

Net Premium


Short (Credit) Iron Condor

Bear (Credit) Call
Spread & Bull
(Credit) Put Spread.

Greater of these 2
values:


  1. Bear (Credit) Call
    Spread
  2. Bull (Credit) Put
    Spread

Greater of these 2
values:


  1. Bear (Credit) Call
    Spread
  2. Bull (Credit) Put
    Spread

Greater of these 2
values:


  1. Bear (Credit) Call
    Spread
  2. Bull (Credit) Put
    Spread
  1. Requirement to place the trade.
  2. Requirement to maintain the position overnight.
  3. OTM = Out-of-the-money.
  4. ITM = In-the-money. ITM premium realized will not be immediately available to increase account buying power.