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Option Margin

Several popular options strategies are given below. Select a strategy to view the margin requirements for different account types.

Long Call or Put

Margin
Initial/RegT End of Day Margin None
Maintenance Margin Same as Initial
Cash or IRA Cash Same as Initial
IRA Margin Same as Margin Account

Short Naked Call

Margin
Initial/RegT End of Day Margin Stock Options 1
Call Price + Maximum ((20% 2 * Underlying Price – Out of the Money Amount),
(10% * Underlying Price))Index Options 1
Call Price + Maximum ((15% 3 * Underlying Price – Out of the Money Amount),
(10% * Underlying Price))
Maintenance Margin Same as Initial
Cash or IRA Cash N/A
IRA Margin Same as Cash Account

Short Naked Put

Margin
Initial/RegT End of Day Margin Stock Options 1
Put Price + Maximum
((20% 2 * Underlying Price – Out of the Money Amount),
(10% * Strike Price))Index Options 1
Put Price + Maximum
((15% 3 * Underlying Price – Out of the Money Amount),
(10% * Strike Price))
Maintenance Margin Same as Initial
Cash or IRA Cash Put Strike Price
IRA Margin Same as Cash Account

Covered Calls

Margin
Initial/RegT End of Day Margin Initial Stock Margin Requirement + MAX((In the Money Amount),(MIN(price of the option),(price of the stock))) 
Maintenance Margin Initial Stock Margin Requirement + MAX((In the Money Amount),(MIN(price of the option),(price of the stock))) 
Cash or IRA Cash Stock paid in full or None
IRA Margin Stock paid in full or None

Covered Puts

Margin
Initial/RegT End of Day Margin Initial Stock Margin Requirement + In the Money Amount
Maintenance Margin Initial Stock Margin Requirement + In the Money Amount
Cash or IRA Cash N/A
IRA Margin N/A

Call Spread

Margin
Initial/RegT End of Day Margin Maximum (Strike Long Call – Strike Short Call, 0)
Maintenance Margin Same as Initial
Cash or IRA Cash Same as Initial if both options are European-style cash-settled

Otherwise, N/A.
IRA Margin Same as Margin Account

Put Spread

Margin
Initial/RegT End of Day Margin Maximum (Short Put Strike – Long Put Strike, 0)
Maintenance Margin Same as Initial
Cash or IRA Cash Same as Margin Account (Both options must be European style cash settled)

Short Put Strike Price (American style options)
IRA Margin Same as Margin Account
Disclosures
  1. Minimum charge of USD 2.50 per share of underlying. This minimum does not apply for End of Day Reg T calculation purposes.
  2. For Leverage Options, Minimum (20% * Leverage Factor, 100%).
  3. For Leverage Options, Minimum (15% * Leverage Factor, 100%)
  • Specific options with commodity-like behavior, such as VIX Index Options, have special spread rules and, consequently, may be required to meet higher margin requirements than a straightforward US equity option. Clients are urged to use the paper trading account to simulate an options spread in order to check the current margin on such spread.
  • If a combination of options is put on in such a way that a specific strategy is optimal at that point in time, the strategy may remain in place until the account is revalued even if it does not remain the optimal strategy. A revaluation will occur when there is a position change within that symbol. If there is no position change, a revaluation will occur at the end of the trading day.