Option Margin Requirements

Strategy               

Margin Required 

Long (Buy)   
Call or Put                               

100% of the option’s premium.

Covered Write
(selling a call covered by a long position, or a covered by short position)                  

No additional margin is required when the underlying interest is held (or short for puts) in the account.

Debit Spread.  
(Bull Call & Bear Put)                                                                                                 

100% of the debit.
NOTE: A minimum requirement for spreads (Requires Level 3 Options Approval)

Credit Spread (Bear Call & Bull Put)                                                                                                                      

The margin requirement for the uncovered call ​

OR The margin requirement for the uncovered put,

OR 100% of the difference between the strike prices of the long and short options LESS the NET credit received

Long Straddle or Combo
(Buy Call & Put)                                                               

The total premium of the long call and long put option.

Short Straddle or Combo.                                                                      
(Sell Call & Put)                                                        

The greater of:

The margin requirement on the short call;
OR Margin requirement on the short put;
PLUS The market value of the option with the lower margin requirement

Buy-Write (Buy Stock & Sell Call for combined debit)                                                                          

The premium received from the option may be applied to the purchase.

The maximum loan value is based on the lower market value of the stock or the exercise value of the short call.

The short call acts as a cap, limiting the profit potential