Client CenterClient Center

Call TradeStation 800.808.9336

Options Account & Margin Requirements

Account Requirements

TradeStation options trading accounts have the same minimum account requirements as our Stock & ETF accounts. For complete details please review our Stock & ETF account requirements.

Margin Requirements (Applies to Stock & Index Options)

Position Margin Accounts Cash Accounts
Initial1 Maintenance2
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 OTM3Put Short 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		 Short 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 + ($250/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 + ($250/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 + ($250/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 Strike Price x Multiplier x Contracts))

  3. Market value of the option + ($250/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:

  • Requirement Bear (Credit) Call Spread

  • 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.

    Ready to trade at the top?

    Open an account today and experience a whole new level of trading with TradeStation.

    Important Notes:

    • A minimum available equity of $2000.00 is required to initiate any new option positions.
    • A minimum available equity of $5,000 is required for option strategies (e.g. spreads) and uncovered options. The liquidation value of options is not included when calculating equity
    • When purchasing options, the TradeStation platform looks at the inside National Best Bid and Offer "NBBO" when determining the estimated cost of the option purchase and does not account for any changes in the NBBO. When placing a market order to purchase on an option, it is possible to spend more than the available cash in your account. Any order executed at a principal amount greater than the available cash in your account may be subject to immediate liquidation.

    Related Content

    Options Pricing

    We offer a simple and competitive pricing plan for both options and spreads orders

    OptionStation

    Powerful options scanning and analysis tools.

    Free Options Trading Book

    Trading Options with OptionStation

    Learn More

    Learn More

    Download Now

    Call a TradeStation Specialist 800.808.9336

     

    IMPORTANT INFORMATION:

    No offer or solicitation to buy or sell securities, securities derivative, futures products or off-exchange foreign currency (forex) transactions of any kind, or any type of trading or investment advice, recommendation or strategy, is made, given or in any manner endorsed by any TradeStation affiliate and the information made available on this Website is not an offer or solicitation of any kind in any jurisdiction where any TradeStation affiliate is not authorized to do business, including but not limited to Japan.

    Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options futures or forex); therefore, you should not invest or risk money that you cannot afford to lose. Options trading is not suitable for all investors. Your account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. Please click here to view the document titled Characteristics and Risks of Standardized Options. Before trading any asset class, customers must read the relevant risk disclosure statements on our Other Information page. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.

    TradeStation Group, Inc. Affiliates: All proprietary technology in TradeStation is owned by TradeStation Technologies, Inc. Equities, equities options, and commodity futures products and services are offered by TradeStation Securities, Inc., a member of NYSE, FINRA, NFA and SIPC. TradeStation Securities, Inc.’s SIPC coverage is available only for equities and equities options accounts. Forex products and services are offered by TradeStation Forex, Inc., a member of NFA. 

    Copyright © 2001-2012 TradeStation Group, Inc.