Margin requirements on Debit call Spreads

Discussion in 'Options' started by Trader7793, Jan 2, 2012.

  1. spindr0

    spindr0

    Margin for debit verticals is the premium paid. For credit verticals it's the difference in strikes less premium received. IOW, it's the max loss of the spread.

    However, brokers have the right to impose higher margin requirements which it appears Ameritrade was/is doing (difference in strikes).

    For margin calc's, see:

    http://www.cboe.com/tradtool/mCalc/default.aspx
     
    #11     Jan 2, 2012