answersLogoWhite

0

Are requirements of margin in put options writing?

Updated: 8/16/2019
User Avatar

Wiki User

16y ago

Best Answer

There are regulatory requirements and then possibly further restrictions based on the specific brokerage. The requirments probably something like this: 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)

User Avatar

Wiki User

16y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Are requirements of margin in put options writing?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What can you put in a notebook that is not drawing or writing?

Journal, comics, scrapbook, facts... There are so many different options!


What is the purpose of a margin?

The purpose of a margin is to provide a buffer or cushion for unexpected losses in investments or trades. Margin can also be used to leverage buying power by borrowing funds to increase the potential return on investment.


What is the Excel formula for the selling price if you have cost and margin?

The selling price is the cost plus the margin. If you know the margin as a fixed value and the cost was in cell A2 and the margin in B2, in C2 you could put the following formulas: =A2+B2 If the margin is a percentage of the cost and the margin is in B2, then the formula would be: =A2+A2*B2


What is 'put' trading?

Put trading means trading put options. Put options are options that are derived from stocks and it allows you to always sell the stock at the strike price before expiration no matter what price the stock is in future. As such, put options are bought when you expect the underlying stock to go DOWN.


When was Never Put it in Writing created?

Never Put it in Writing was created in 1964.


What was buying on margin in 1920's?

"Buying on Margin" meant that you would only have to put down a small percentage of money (10%) and the broker would cover the rest.


What is buying stocks with loans from brokers called?

This is called Margin Loan or Margin Buying. Attention! Please don't just put smiley faces, it's annoying when someone needs the answer!


How do you hide the ad but keep the search bar on myspace?

put this in your about me:body {margin-top:-100px;}


The situation in which an investor is asked to put more money to cover his or her loan on stock?

margin call


Why contingency approach to management is important?

It is important to have contingency plans in management so that options are available if a crisis occurs. Contingency plans should be put in writing and in a place that all management can easily get to, if needed.


How do you put a blackberry bold to private number?

Go to Settings > Options > Phone options > General Options > Restrict my identity


What are the ratings and certificates for Never Put It in Writing - 1964?

Never Put It in Writing - 1964 is rated/received certificates of: Finland:S