I am not aware if this type of issue below applies to all brokers who offer Options but if so I'de love to know. I Established an account with Options House and when attempting to sell a COVERED call it tells me that I cannot do so without a margin account. Firstly I did not need margin for the amount of equity that was needed to establish the trade. The trade was as follows... The stock price I was attempting to sell a covered call on was at roughly $7.60 I wanted to SELL two calls at a $10 strike for $0.30 and then BUY two calls at $11 for $0.10 This trade above presents a max loss of $400 with a max gain of $40. So my main question is why does a trade requiring an equity of roughly $1500 with a max loss of $400 on an account with a cash value of $5000 require margin to make a short covered call trade? I am sure there is a "rule" as to why this is not possible so if someone could provide info on that I'de appreacite it. I guess it's back to only trading Forex where I'm free to use any strategy I want without bogus requirements that have no backing as to why they stand in the first place.