general rule for margin

Discussion in 'Options' started by cloned777777, Sep 19, 2005.

  1. if i sell naked put... what is the general rule for margin ?

    I know they will keep the premium and add that to my credit.

    So for instance if I sell a put and get credit ( premium )
    and this is naked short put .....

    what is the required margin... IB, or SAXO

    2 senarios
    if it is otm now
    and when it gets itm

    second part of the Q is
    what if i am am covered... does it reduce the margin requirment...
    because to cover the sold put, i need to go short in underlaying,
    so am I going to be asked to deposit more margin for short of the underlaying, and the sold put less the premium.. ?
  2. fare_game


    2% of underlying + option margin less premium
  3. I got it
    2% underlying + delta + spot price = margin ...
  4. correction
    2% underlying X delta X spot price = margin
  5. For the second part of your question:
    You have to satisfy margin for one leg of your positions. Either short or naked put which is is higher.