Total margin loan for short options

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

  1. 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? Does the loan amount always stay there?
    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. =========================

    Tried to figure total risk to me if i was selling calls & stock takeover occured , couldnt so did not ever sell any.

    Sure it varies from broker ;
    sure it changes as price does.Best to ask your broker.

    Fairly precise, so recent example ,Interactive brokers uses the
    words initial margin, maintance margin; on $40 qqqq OTM calls its $636 per contract today . Stayed same today, option price didnt move today after sold contracts to open.
    IB uses no such terms so dont know what you mean

    Dont know what you mean by ''total loan;''
    but you need to ask you broker it varies.