All Questions
Tagged with margin put-options
9
questions
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2
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194
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Not clear about margin requirements on Shorting Puts
I'm trying to understand how Margin Requirements work when trying to sell a Put Option without having sufficient cash to cover the Option in case it's assigned.
For example, let's say I have $100 ...
user19035
1
vote
1
answer
109
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Maintenance margin for fixed collateral
My portfolio is composed of all-equity plus 20% out of money protective puts. If the market drops 20%+ (as it is doing now), my portfolio value is constant at 80% of my original investment.
I would ...
- 265
1
vote
1
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241
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Why are my funds locked up in my trading account while using bear put strategy?
Today I used a bear put strategy and I was surprised to see that some funds in my trading account were locked up as margin used. It is well known that the potential loss in bear put strategy is ...
1
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1
answer
1k
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No margin account and put expires ITM
This question is a followup to a recent and similar question on buying a put: When a long PUT expires in-the-money, whose shares are being sold?.
Suppose I don't have a margin account, and I buy a ...
- 506
1
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1
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44
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Explicit margin requirement for RPUT ETF?
I read RPUT ETF prospectus and there is this paragraph:
The number of RUT Puts sold by the Fund varies month to month but is
limited by the amount held by the Fund in Treasury bills, the value of
...
- 709
-1
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3
answers
199
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By pass the 100% limit in shorting: Capitalising on a Market Crash
I want to short a cryptocurrency that is highly overvalued.
Let say its current value as of now is $10,000 , my intuition say that sometime next year like Feb its going to fall significantly to about $...
- 113
0
votes
1
answer
122
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What's wrong with this margin calculation?
I'm calculating margin on put selling options using TDAmeritrade's formula. It can be found here on p.11: https://www.tdameritrade.com/retail-en_us/resources/pdf/AMTD086.pdf
Using the first example ...
- 1,408
2
votes
1
answer
238
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Question about margin and investing
Lets say I have $10,000 cash in an account and margin buying power of $20,000. I sell a put that is worth $9,000 and it gets exercised. Will I be using margin since i have enough cash in the account ...
- 37
4
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2
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345
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Can you write a put option without sufficient funds to meet the potential obligation?
When writing a put option does your account have to be funded so that if the buyer exercises the right to sell you can meet your obligation, or can you write the put option without the funds to meet ...
- 141