In addition to the standard portfolio margin requirement calculations (TIMS margin methodology), tastyworks enforces the following house rules/requirements. All rules and requirements are subject to change with no notice. All rules/requirements are subject to change with no notice.


Sections


What is tastyworks' extra house requirements for PM accounts?

Extended Risk Slides for Indices & Product Groups

Margin requirements on indices and product groups will be calculated by stressing at least -20%/+15%. These stress tests can be extended even further for specific underlyings.


Extended Risk Slides for Individual Equities

Margin requirements on all individual equities will be calculated by stressing at least -25%/+20%. These stress tests can be extended even further for specific underlyings.


Extended Risk Slides for Small-Cap Biotech Stocks

Margin requirements on all small-cap biotech equities will be calculated by stressing at least -50%/+100%. These stress tests can be extended even further for specific underlyings.


Alternative Minimum Requirement for Naked Options

An alternative minimum requirement will be calculated by multiplying the number of uncovered short options by a variable percentage of the underlying deliverable value. While this variable percentage can change at any time and may be different for different underlyings, the default percentage is 0.5%. For example, if you were to sell-to-open 1 ABC call while ABC is trading at $500 and the variable percentage for ABC is 0.5%, the alternative minimum requirement for this ABC position would be $250 ($500 x 100 multiplier x 0.5%).


Extended Risk Slides Prior to Earnings

If a stock is scheduled to announce earnings (typically up to 3 days out), the stress tests used to calculate margin requirements will be extended by 50%. For example, if a stock’s normal stress test is -20%/+20%, it will be extended to -30%/+30% leading up to earnings and through the announcement date.