Margin loan

Discussion in 'Trading' started by sectrader, Jul 9, 2005.

  1. Hello,
    I am trying to understand total margin loan for short puts or calls.
    Not margin requirements, but total loan associated with position.
    Is it 100% of the strike price?
    Let's say that stock is priced $150. And I have short put for
    strike price $55. What will be the loan amount? Is it $5,500?
    Thank you.
  2. Chagi


    I haven't studied this in depth yet (going to be retaking a class on risk management this fall), but aren't the margin requirements for futures and options based upon the change in value and the initial margin requirement?

    For example, if your initial margin requirement is, say, $5000, and the value of the given instrument drops by, say, $500, you would either be required to meet a margin call for $500 or face liquidation of your position?
  3. I am not talking about margin requirement or collaterial.
    The question is about total loan from broker for the postion.
    Thank you.