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I don't day trade and the firm knows I hold all my positions for weeks if not months. The option actually expires in May, not April. I'm hoping the stock will be rising sharply in the next month due to a much hyped product release (by now you should know what stock this is) and selling these...

Here is my strategy, perhaps you can shed light on where the potential pitfalls are. I have been trading for about 7 years, and buying options for roughly three years now. After reading a little about selling options I realized I can get the same returns or perhaps a little lower returns but...

Why would this position raise a red flag?

I've been buying options on the side for years, successfully. I'm new to the selling side and I'm new to risk-based margin. Seriously, you're giving me a heart attack here.

Correct, I sold the put. I apologize for the error. strike price @ $115 Stock price @ $90 I sold it for $25 Did I break even here?

Will they credit the account the sale price for those options? I don't understand? I bought a put in the money because I think the stock is going to move up.

I'm a little new to the game and I got an e-mail saying "BASED ON AN ASSIGNMENT FROM OCC, YOUR ACCOUNT HAS BEEN ALLOCATED THE FOLLOWING ASSIGNMENT ON SHORT OPTION POSITIONS" I just picked up this position yesterday. Do I need to purchase the stocks myself to cover or will the prop firm do...

I got the basic understanding of how it works. I'm just not sure what happens if you sell an option and the strike price is more then 15% away. From what I understand there is a $25 per contract minimum but what if the premium you receive covers the minimum?

My friend doesn't trade options, he trades stocks and they give him 6X margin. He isn't familiar with how the margin works on option trades. He also mentioned that he isn't hindered with Reg T laws and keeps over night positions with margin all the time. Not sure why or how.

Huh? My friend trades for a place that gives him margin on options. I'm thinking about joining him.

Anyone?

If I have a 15% haircut and I sell calls and puts more then 15% away from the current price, what's my cash requirement?

I have been trading options successfully for the last three years on the side and decided to make a career of it. I'm a little confused however by the "haircut" margin. What is the typical haircut % that most props offer? If one is selling options does the premium you receive count...