BP Effect / Margin Requirements

Elevated Margin Requirements for Volatility Products
Much like fate, volatility is an untamed animal. You’re probably wondering, “How so?” Let’s imagine volatility as a tiger. One minute it could be cute and f...
Index Options with Elevated Naked Requirements
Uncovered short options on certain cash-settled indexes will be calculated using 25%/15% instead of 20%/10%. The following symbols are held at the higher re...
Forward Conversion (Long Stock, Short Call and Long Put with the Same Strike and Exp.)
The margin requirements for a forward conversion are as follows:   Initial below $3.00/share: 100% of the stock + the cost of the put option and no requ...
Reverse Conversion (Short Stock, Short Put and Long Call with the Same Strike and Exp.)
The margin requirements for a reverse conversion are as follows:   Initial $5.00/share and below: greater of $2.50/share or 100% of the stock + the cost...
CBOE Margin Calculator and FINRA Rule 4210
The links below are some additional resources for calculating margin requirements and other margin related questions: CBOE Margin Calculator FINRA Rule 4...
Naked Short Put
The margin requirement for an uncovered put is the greatest of the following calculations times the number of contracts times the multiplier (usually 100): ...
Long Put
The BP Effect of a long put is the premium of the put times the number of contracts.   Example:   Buy to open 7 Mar 25 puts for $3.58   3.58 x 7 x...
Naked Short Call
The margin requirement for an uncovered call is the greatest of the following calculations times the number of contracts times the multiplier (usually 100):...
Long Call
The BP Effect for a long call is the premium of the call times the number of contracts.   Example:  Buy to open 3 Mar 45 calls for $1.56   1.56 x ...
Short Butterfly
The margin requirement for a short butterfly is the margin required on the credit spread portion of the strategy (difference between short and long strikes)...