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Trading options can be complex

That’s why our options margin requirements are straightforward.

Margin requirements (applies to stock & index options)

 

PositionMargin accountsCash accounts
  Initial1Maintenance2 
Long callBuy call100% cost of the optionN/A100% cost of the option
Long put / protective putBuy put/buy put and buy underlying100% cost of the optionN/A100% cost of the option
Covered OTM3 callBuy stock trading at P* and sell call with strike price > PRequirement long stock (marked to market)Requirement long stock (marked to market)Requirement long stock (marked to market)
Covered ITM4 callBuy stock trading at P and sell call with strike price < PRequirement long stock (marked to market)Requirement long stock (marked to market)Requirement long stock (marked to market)
Covered OTM3putShort stock trading at P and sell put with strike price < PRequirement short stock (marked to market)Requirement short stock (marked to market)N/A
Covered ITM4 putShort stock trading at P and sell put with strike price > PRequirement short stock (marked to market) +100% put ITM valueRequirement short stock (marked to market) +100% put ITM valueN/A
Cash-covered putShort put with enough cash to cover exerciseN/AN/A(Strike price x multiplier x contracts) — premium proceeds
Naked callShort 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 putShort 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 + (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 + ($100/contract)
N/A
Bear (credit) call spreadBuy 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 multiplierNet premium + (strike price long call – strike price short call) x contracts x multiplier
Bull (credit) put spreadBuy 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 multiplierNet premium + (strike price short put – strike price long put) x contracts x multiplier
Bull (debit) call spreadBuy call and short call (strike price long call < strike price short call)Net premiumN/ANet premium
Bear (debit) put spreadBuy put and short put (strike price long put > strike price short put)Net premiumN/ANet premium
Long straddleBuy call and buy put with the same strike price100% cost of the optionsN/A100% cost of the options
Short straddleShort call and short put with the same strike price

Premium of other options + greater of these two values:

  1. Requirement naked calls
  2. Requirement naked puts

Market value of other options + greater of these two values:

  1. Requirement naked calls
  2. Requirement naked puts
N/A
Long strangleBuy call and buy put with different strike prices100% cost of the optionsN/A100% cost of the options
Short strangleShort call and short put with different strike price

Premium of other options + greater of these two values:

  1. Requirement naked calls
  2. Requirement naked puts

Market value of other options + greater of these two values:

  1. Requirement naked calls
  2. Requirement naked puts
N/A
Long (debit) butterfly call spreadBear (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 premiumN/ANet premium
Short (credit) butterfly call spreadBull (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 spreadRequirement bear (credit) call spreadRequirement bear (credit) call spread
Long (debit) butterfly put spreadBear (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 premiumN/ANet premium
Short (credit) butterfly put spreadBull (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 spreadRequirement bull (credit) put spreadRequirement bull (credit) put spread
Long (debit) condor call spreadBear (credit) call spread & bull (debit) call spread Intervals between spread strike prices equal. All legs with the same expiration date.Net premiumN/ANet premium
Short (credit) condor call spreadBull (debit) call spread & bear (credit) call spread Intervals between spread strike prices equal. All legs with the same expiration date.Requirement bear (credit) call spreadRequirement bear (credit) call spreadRequirement bear (credit) call spread
Long (debit) condor put spreadBear (debit) put spread & bull (credit) put spread Intervals between spread strike prices equal. All legs with the same expiration date.Net premiumN/ANet 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 spreadRequirement bull (credit) put spreadRequirement bull (credit) put spread
Long (debit) iron butterflyBull (debit) call spread & bear (debit) put spread. Long call and long put legs with the same strike price.Net premiumN/ANet premium
Short (credit) iron butterflyBear (credit) call spread & bull (credit) put spread. short call and short put legs with the same strike price.

Greater of these two values:

  1. Requirement bear (credit) call spread
  2. Requirement bull (credit) put spread

Greater of these two values:

  1. Requirement bear (credit) call spread
  2. Requirement bull (credit) put spread

Greater of these two values:

  1. Bear (credit) call spread
  2. Bull (credit) put spread
Long (debit) iron condorBull (debit) call spread & bear (debit) put spreadNet premiumN/ANet premium
Short (credit) iron condorBear (credit) call spread & bull (credit) put spread

Greater of these two values:

  1. Bear (credit) call spread
  2. Bull (credit) put spread

Greater of these two values:

  1. Bear (credit) call spread
  2. Bull (credit) put spread

Greater of these two values:

  1. Bear (credit) call spread
  2. Bull (credit) put spread

* P = Current market price.

  1. Requirement to place the trade.
  2. Requirement to maintain the position overnight.
  3. OTM = Out-of-the-money.
  4. ITM = In-the-money.

 

Important Notes

A minimum available equity of $2,000 is required for option strategies (e.g., spreads) and $5,000 for uncovered options (e.g., naked). 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.

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