Selling puts and calls one week out on ETF's

Discussion in 'Options' started by toben, May 31, 2013.

  1. Not exactly, though it's probably better to treat it this way if you don't know what you are doing. In fact, probably best not to sell puts in general if you don't know what you are doing.

    The initial margin requirements at OH are:

    Long stock (>$3): 50%
    Short put: 20% of the underlying stock price minus any out-of-the-money amount plus option premium, OR 10% of the strike price plus option premium, whichever is greater.
     
    #11     Jul 8, 2013
  2. I was probably being too specific but in an IRA at IB you can sell naked puts but with margin requirements just as I described.
    i.e. same as long stock
     
    #12     Jul 8, 2013