The exchanges set the minimum margin rates, but each broker will require a different margin, depending on whether they specialize in options or not. This is something you'll have to ask each broker in order to compare.
It will also depend on what underlying asset you are deriving your put option from, so you'll have to be more specific. You wanting to sell puts on indexes, index futures, commodities, stocks, what?
And finally, it will depend on whether you want to do straddles, spreads, or the more exotic combinations, or just plain naked put and call writing. But it will also depend on whether you write "in the money" puts or "out of the money" puts, and how far out.
Your broker will have many more specific questions, like, how much is your house worth, so we can come get our money when you fail to use stops?
2006-07-10 09:06:58
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answer #1
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answered by dredude52 6
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The margin for writing naked options varies depending on the value of the underlying equity or index. Rough example: To write a naked put on the SP 500 index which has a value of about $125000, you need to put up about $37000 in margin. Any broker can tell you the margin for other trades or you can Google the CBOT and go to their website for the requirements.
2006-07-10 10:51:12
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answer #2
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answered by wealthmaster 3
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