LEAPS and Margin
- Thread starter dcwriter2
- Start date
Unless something has changed you do not buy options on margin, it is a debit and you have to pay the entire cost.
Robert Morse
Sponsor
No. they are not marginable.
What do you mean by "What about with a covered OTM call?"
Margin:
For purchases of puts or calls with more than 9 months until expiration, deposit / maintain 75% of the total cost / option current market value. When time to expiration reaches 9 months, the option no longer has value for margin purposes. Purchases of puts or calls with 9 months or less until expiration must be paid for in full.
From CBOE SPX Leap - no retail broker is equipped to offer it, because they will need to be hand calculated,
http://www.cboe.com/products/stock-...-options/spx-leaps/equity-leaps-options-specs
For purchases of puts or calls with more than 9 months until expiration, deposit / maintain 75% of the total cost / option current market value. When time to expiration reaches 9 months, the option no longer has value for margin purposes. Purchases of puts or calls with 9 months or less until expiration must be paid for in full.
From CBOE SPX Leap - no retail broker is equipped to offer it, because they will need to be hand calculated,
http://www.cboe.com/products/stock-...-options/spx-leaps/equity-leaps-options-specs