The opinions expressed in these forums do not represent those of C2, and any discussion of profit/loss is not indicative of future performance or success. There is a substantial risk of loss in trading. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You should read, understand, and consider the Risk Disclosure Statement that is provided by your broker before you consider trading. Most people who trade lose money.
Hi, Pradeep:
The basic formula is as follows.
For selling options short, uncovered – assuming there are no spreads or straddles – the amount of net margin required is:
The greater of either:
(20% x underlying price) - outOfMoneyAmount
or
10% x underlying price
