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:   (Long Stock, Short Call and Long Put with the Same Strike and Exp.) Initial below $3...
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:   (Short Stock, Short Put and Long Call with the Same Strike and Exp.) Initial $5.00/s...
Naked Short Put
Naked Put Margin Requirement Applies when selling uncovered puts in a margin account The margin requirement for an uncovered put is the greatest of the fo...
Cash Secured Put
Buying power requirement for selling a put in a cash account Selling an outright put requires the cash-secured amount The buying power requirement for a c...
Long Put
Buying power requirement when buying an outright put Applies to cash or margin accounts The BP Effect of a long put is the premium of the put times the nu...
Naked Short Call
Margin requirement when selling naked calls Uncovered call selling can only be performed in a margin account The margin requirement for an uncovered call ...
Long Call
Buying power requirement to buy long calls Applies to margin and cash accounts The BP Effect for a long call is the premium of the call times the number o...
Short Butterfly
Margin requirement when trading a butterfly Applies only to margin accounts The margin requirement for a short butterfly is the margin required on the cre...