75 percent margin on Leaps?

Discussion in 'Options' started by nravo, Sep 21, 2007.

  1. nravo

    nravo

    A couple years ago, there was proposal floating around to allow 75 percent down on Leap purchases. Anything ever come of this or will come of this?
     
  2. Div_Arb

    Div_Arb

    I trade LEAPS quite frequently and I have heard nothing of this. Perhaps the new portfolio margining rules took this proposal off the table. Why don;t you give your trading desk a call and see what they say?
     
  3. Long Call – more than 9 months until expiration

    Initial margin requirement:
    75% of the total cost of the call(s)

    after position is established, ongoing maintenance margin requirement applies and an increase_(or decrease) in the margin required is possible

    at 9 months before expiration and afterwards, long calls no longer have value for margin equity purposes
     
  4. nravo

    nravo

    I just checked IB's margin regs and long call is a long call regardless of time -- and requires 100% down. You know of a broker that allows 75% down for long-dated calls? Is this even allowed?
     
  5. Brokers can require higher margin requirements than Reg T... and I don't know what other brokers, if any, offer this.

    Is this even allowed? The info that I posted came from the CBOE's web site. If they're wrong, is anything right?
     
  6. nravo

    nravo

    Just to repeat. Does anyone know of a broker that allows 75 percent margin on Leaps?