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Option Requirements

Option Type

Cash Account Initial Requirement

Cash Account Initial Maintenance Requirement

Long Put or
Long Call
(this position has no loan value)


Equity, Index, Capped Index, Interest Rate Composite, Foreign Currency and Foreign Currency Cross-Rate Pay for option in full.



Pay for option in full.



Short Put or
Short Call

























Equity, Index, Interest Rate Composite, Foreign Currency and Foreign Currency Cross-Rate











Deposit cash or cash equivalents equal to the exercise price or put option deposit letter for short put. Deposit appropriate escrow receipt for short calls. Sales proceeds not released until deposit is made.







100% of the option proceeds plus:
* 20% of the underlying stock value
* 15% of the underlying broad-based index value
* 20% of the underlying narrow-based index value
* 10% of the underlying aggregate interest rate composite value
* 4% of the underlying foreign currency value(also applies to Foreign Currency Cross-Rate options)
less out-of-the-money amount, if any, to the minimum of option proceeds plus:
* 10% of the underlying stock value
* 10% of the underlying broad-based index value
* 10% of the underlying narrow-based index value
* 5% of the underlying aggregate interest rate composite value
* 75% of the underlying foreign currency value(also applies to Foreign Currency Cross-Rate options)
Foreign Currency or Foreign Currency Cross-Rate options requirement may be satisfied with a letter of credit from an approved bank.
Foreign Currency Cross-Rate margin is calculated in the base currency of the contract.
Capped Index





For put option deposit letter or appropriate escrow receipt for short call deposit amount equal to the cap interval times the index multiplier. The lesser or:
The cap interval times the index multiplier or
100% of the option proceeds plus
15% of the underlying index value lesser the out-of -the-money amount, if any, to a minimum of the premium plus 10% of the underlying index value.


Short Put and
Short Call (short Copped Index and short index permitted)






Equity, Index, Interest Rate Composite, Foreign Currency and Foreign Currency Cross-Rate





Deposit cash or cash equivalents equal to the exercise price or put option deposit letter for short put. Deposit appropriate escrow receipt for short calls. Sales proceeds not released until deposit is made.

For the same underlying
*Equity *Interest Rate Composite
*Index *Foreign Currency
*Copped Index *Foreign Currency Cross-Rate
with the same multiplier short put or short call requirement, whichever is greater, plus the option proceeds of the other side.



Put Spread or  Call Spread (long side expires with or after short side,long Copped Index or short options cannot receive spread treatment) Equity, Index, Interest Rate Composite, Foreign Currency and Foreign Currency Cross-Rate



Not permitted.






For the same underlying
*Equity *Interest Rate Composite
*Index *Foreign Currency
*Copped Index *Foreign Currency Cross-Rate
with the same multiplier the amount by which long put(short call) aggregate exercise price is below short  put(long call), aggregate exercise price long side must be paid for in full.
Short Call or Long Underlying (not permitted for Index or Interest Rate Composite Options) Equity, Index, Capped Index, Interest Rate Composite, Foreign Currency and Foreign Currency Cross-Rate

Pay for the underlying position in full.




No requirement on short call.
50% requirement on long stock position.
100% requirement on foreign currency position.




Short Put and Short Underlying (not permitted for Index, Interest Rate Composite, Foreign Currency or Foreign Currency Cross- Rate Options) Equity






Not permitted.






No requirement on short put.
50% requirement on short stock position.






 
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