(https://autoshares.com) 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 Optio...

(https://autoshares.com) Options levels and strategies have varying degrees of risk. Most options brokers assign trading levels from 1 to 5; with 1 being the lowest and 5 being the highest. A trader with a low trading level will be fairly limited in the strategies they can use, while one with the highest will be able to make pretty much whatever trade they want. In order to evaluate whether a specific investor understands the risks associated with each level of options trading, your expe...

(https://autoshares.com) Options Spread Risk Disclosure Before using our spread order entry screen, options spread traders must understand the additional risks associated with this type of trading. While it is generally accepted that spread trading may reduce the risk of loss of trading of the outright purchase of a standardized option contract, an investor/trader MUST understand that the risk reduction can lead to other risks. - Early exercise and assignment can create risk and loss. ...

(https://autoshares.com) Options involve a high degree of risk and are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially significant losses. Please read the Characteristics and Risks of Standardized Options (https://www.theocc.com/components/docs/riskstoc.pdf) before deciding to invest in options. (https://autoshares.com)