Minimum account for Shorting naked options

Discussion in 'Options' started by FlashyFinancier, May 15, 2012.

  1. hi, i know this question has probably been asked a million times but i'd like to know what the minimum is when opening an account allowing us to write naked options...

    i've searched threads on this forum about this topic but it still not very clear.

    Some people say you need a really high absolute number like 100k or 125k or even 200k just to start. i think thats crazy...

    some people say its a formula based on 30% of the underlying + or - some other adjustments... those who really do write options naked, what is the absolute lowest amount we need to put up before brokers will let us do that. I've heard good things about optionsexpress but i'm willing to choose any broker.
  2. Ask your broker. It varies.
  3. johnnyc


    $2K would be the minimum you would need for a margin account. Bu then you'd have have enough $ to meet the requirement for what you want to sell.
  4. hajimow


    Each broker has its own minimum to open an account. For example as far I know IB has a minimum of 10K for opening an account. Once you open an account, you have to sign up an agreement accepting the risk of selling naked options and that does not need more money. You should prove or say that you are experienced in trading option . Trading options has levels. First level is selling covered calls or buying calls.
  5. hajimow


    By the way you should also have the minumum margin needed for that trade. Selling a naked Call on a $10 stock with the strike of $12 is much lower than selling naked call for a $500 stock with the strike price of $550.