Short Put Butterfly

Margin requirement of the credit spread side of strategy (difference between the short strike price and the long strike price x number of contracts)

Margin requirement of the debit spread side of the strategy (cost of long option – credit of short option)

(Premium received from the sale of short put(s) may be applied to meet the initial margin requirement)


Sell to open 6 contracts Mar 42 Put at .90

Buy to open 12 contracts Mar 37 Put at .15

Sell to open 6 contracts Mar 32 Put at .05

5 x 6 x 100 = $3,000

$3,000 is the margin requirement for the credit spread component of the strategy


.15 x 6 x 100 = $90

.05 x 6 x 100 = $30

$90 – $30 = $60

$200 is the margin requirement for the debit spread component of the strategy

$3,000 + $60 = $3,060

$3,060 is the margin requirement for the strategy



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.