for selling naked put broker regurment is to have 25% of underling market price you must have cash or you can have 25% worth of stock a mean its ok! to have stock or you mush have cash thank you.
2007-10-02 18:54:09 · 1 answers · asked by Gary 1 in Business & Finance ➔ Investing
Assuming the strike price is close to the stock price that is roughly what the initial margin requirement is. However that is not the formula used to calculate the requirement, and the requirement will change as the price of the stock changes.
Also be aware that some brokerages have margin requirements larger than the minimums required by the SEC. Consequently the only way for you to be certain how to calculate your margin requirements would be for you to contract your broker.
You should also be aware that not all stock is acceptable for fulfilling your margin requirement. Once again you will need to check with your brokerage to be sure which stock you can use and which you an not use.
2007-10-03 00:38:28 · answer #1 · answered by zman492 7 · 1⤊ 0⤋