Covered Put

Short Stock and Short Put

Initial $5.00/share and below: greater of $2.50/share or 100% and no requirement on short put

Initial above $5.00/share: greater of $5.00/share or 50% and no requirement on short put

Maintenance below $2.50/share and put option is out of the money: $2.50 per share

Maintenance below $2.50/share and put option is in the money: $2.50/share + 100% of the in the money amount of the put option

Maintenance $2.50/share to $5.00/share and put option is out of the money: 100% stock

Maintenance $2.50/share to $5.00/share and put option is in the money: 100% stock + 100% of the in the money amount of the put option

Maintenance above $5.00/share to $16.67/share and put is out of the money: $5.00/share

Maintenance above $5.00/share to $16.67/share and put is in the money: $5.00/share + 100% of the in the money amount of the put option

Maintenance above $16.67/share and put is out of the money: The maintenance margin requirement is based on a comparison of the stock position’s value to the absolute value of all marginable stocks in the account. This includes long and short stock.

Maintenance above $16.67/share and put is in the money: The maintenance margin requirement is based on a comparison of the stock position’s value to the absolute value of all marginable stocks in the account. This includes long and short stock.

 

 

The market values and margin rates used to compute the initial and maintenance margin scenarios utilize OptionsHouse house standards. Higher margin rates may be utilized when calculating these scenarios.

The amount of money you can borrow on margin toward the purchase of securities is typically limited to 50 percent of the value of marginable securities in your account. However, it is prudent to borrow less to minimize risk.

Once you borrow on margin, you are required to maintain a certain amount of equity in your account, depending on the securities you hold. Typically, the equity maintenance requirement is at least 30% of the total account value, but it can be higher for certain securities or accounts.

Margin loans may be established by our clearing firm, Apex Clearing Corporation (“Apex”), in its sole discretion regardless of the amount of collateral delivered to Apex, and Apex may change such minimum and maximum amounts from time to time without notice to our customers.

In the interest of ensuring the continued safety of our clients, Apex may, without notice, modify certain margin policies to adjust for volatility in financial markets. The changes will promote reduction of leverage in client portfolios and help ensure that clients’ accounts are appropriately capitalized.