Uncovered options are bounded by certain margin requirements. That is why uncovered options trading could be safer than buying options. Start using our system for QQQ and SPY uncovered options now.
Margin and Margin RequirementsMarginWhen an investor borrows money from a brokerage house to cover part of the purchase of a security, an investor is borrowing on margin. Margin Requirement (stocks)The maximum percentage of the investment that can be loaned by the brokerage firm, is the margin requirement set by the Federal Reserve Board. Margin Requirement (options)The uncovered options margin requirement is the amount that an uncovered options writer must keep on deposit in his account to cover the naked option position. Based on current prices, the margin requirement is updated daily. Sign up Now!One single winning trade DISCLAIMER: THIS INFORMATION IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE ANY FINANCIAL ADVICE. RISK IS INVOLVED IN ALL STYLES OF MONEY MANAGEMENT. Uncovered options trading involves greater risk than stock trading. You absolutely must make your own decisions before acting on any information obtained from this Website.
The return results represented on the web site are based on the premium received for the selling options short and do not reflect margin. It is recommended to contact your broker about margin requirements on uncovered options trading before using any information on this web site. Use our "Trade Calculator" to recalculate our past performance in relation to the margin requirements, brokerage commissions and other trading related expenses. Past performance is not indicative of future results. |
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Risk Statement: Naked options trading is very risky,
many people lose money trading and losses can exceed the amount invested.
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