The maximum is 9.5%. **Margin and Notional Value based on prices from 4/22/2022. A prospectus, obtained by calling 800-669-3900, contains this and other important information about an investment company. Characteristics and Risks of Standardized Options, Trading Forex: What Investors Need to Know, Premium Collected from Selling an Option (Opening or Closing), Appreciation of Marginable Securities when Reg-T excess is available, Available Funds for Trading (Option BP on thinkorswim), Long stock position valued at $4.01 per share or more, 30% of the current market value of the stock, Long stock position value between $2 and $4 per share, Long stock position valued at $1.99 or less per share, 100% of the current market value of the stock, Short stock position valued at $16.67 per share or more, Short stock position valued between $5.01* and $16.67 per share, Short stock position valued between $2.50 and $5 per share, Short stock position valued at less than $2.50 per share, Percentage of Stock Value: 20% x [$81.25 x (5 x 100)], Out-of-the-Money Amount: ($81 - $81.25) x 500, Percentage of Strike Value: 10% x [$81.25 x (5 x 100)], Out-of-the-Money Amount: ($70 - $81.25) x 500, Percentage of the Excercise Value: 10% x [$81 x (5 x 100)], Premium Received for 60 puts: $0.25 x (5 x 100), Strike Multiplied by # Contracts sold: $70 x (5 x 100), Strike Multiplied by # Contratcs bought: $65 x (5 x 100), Premium Paid for 65 Calls: $2.25 x (5 x 100), Percentage of Stock Value: 20% x [$65.25 x (5 x 100)], Out-of-the-Money Amount: ($65 - $65.25) x 500, Current Value of the Non-Holding Side (puts), Percentage of Index Value: 20% x [$201.55 x (5 x 100)], Out-of-the-Money Amount: ($201.55 - $205) x 500, Minimum Percentage of Index Value: 10% x [$201.5 x (5 x 100)], Accounts managed by TD Ameritrade Investment Management, May not short stock or sell uncovered options. By rejecting non-essential cookies, Reddit may still use certain cookies to ensure the proper functionality of our platform. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Any news on why? Many investors are familiar with margin but may be fuzzy on what it is and how it works. This adjustment can be done on an individual account basis, as well as on a stock-by-stock basis, depending on a stock's trading volatility and other factors. Maintenance excess applies only to accounts enabled for margin trading. This is derived by taking the margin requirement for the naked calls (the greater requirement) and adding to it the current value of the puts. Please read Characteristics and Risks of Standardized Options before investing in options. TD Ameritrade Network is brought to you by TD Ameritrade Media Productions Company. That spread would cost you $9.50 x $50, or $475. But keep in mind that each product has its own unique trading hours. Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC). For details, see ourcommissions and rates. or Share My Personal Information.

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