for naked put writhing?

Question

hi guys for naked put writhing do you need 25-30% money of strike price or you can have 25-30% worth of stock and lever 5 to wright naked put thank you.

Answer 1

For a near the money strike that would be an approximation of what most brokers would require in margin. That amount could be in cash, marginable stock, or a combination of the two.

Since brokers are allowed to require more margin than the SEC minimum, the only way for you to determine your margin requirement would be to ask your broker. Similarly, different brokers have different levels for options trading, so what is allowed at level 3 at one brokerage may require level 5 at another brokerage. Once again the only way to be sure is to ask your broker.