Margin Interest On Out Of The Money Expiring Options

M

MUNGO

If I short same day out of the money expiring options on margin will I be charged margin interest? Generally these short options are not removed from your account until the next business day. Just wondering if your broker charges you margin interest for these worthless securities between the day they expire & the date they are removed from your account.

For example. I naked short 1 contract of SPY 300 Put On Fri. that expire the same Fri. with SPY closing @ 301. This option, although expired worthless, will not be removed from your account until Mon. Will I be charged margin interest between Fri. & Mon.?
 
You are not charged margin interest on options.

Short options have a margin requirement at all times and that disappears when the position disappears (expiration, exercise).
 
I think you will never be charged margin loan interest for option trades because options are non-marginable and can not be bought/sold using margin. At least at TDA
 
MUNGO, the other respondents are correct - selling options does not entail paying margin interest. You will have a "margin requirement" while the short position is active. A margin requirement is just a portion of your free cash that is held aside (like collateral) while the trade is ongoing. Once the trade is offset, the funds are "released" back to you. "Trading on margin" and "margin requirements" are two very different things.
 
syd697 said:
MUNGO, the other respondents are correct - selling options does not entail paying margin interest. You will have a "margin requirement" while the short position is active. A margin requirement is just a portion of your free cash that is held aside (like collateral) while the trade is ongoing. Once the trade is offset, the funds are "released" back to you. "Trading on margin" and "margin requirements" are two very different things.
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Now if I am issued an margin call @ the close of the trading day because my buying power went negative due to changing margin requirements, but the following business day it's back positive due to the short options expiring worthless will I be charged margin interest?
 
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