# The margin requirement for naked put writing on C2

**URL:** <https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119>\
**Category:** Trading and Markets\
**Created:** [January 10, 2017, 12:24pm UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119 "2017-01-10T12:24:38Z")\
**Posts on this page:** 8\
**Page:** 1

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**Author:** ![RobertFisher](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/robertfisher/32/1487_2.png) [@RobertFisher](https://forums.collective2.com/u/RobertFisher)\
**Post date:** [January 10, 2017, 12:24pm UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119/1 "2017-01-10T12:24:38Z")

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I can not find the information about this.  
Let’s say I would like to write 100 naked put of SPY at the strike price of 226. The premium I can collect is 0.3 $ per share. What is the required margin for this trade?

I see a couple of systems they can trade much much more than the popular broker allows. The margin is even higher than the stock trading which is 2x.

Anyone knows the answer? Thanks!

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**Author:** ![RobertFisher](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/robertfisher/32/1487_2.png) [@RobertFisher](https://forums.collective2.com/u/RobertFisher)\
**Post date:** [January 10, 2017, 10:01pm UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119/2 "2017-01-10T22:01:10Z")

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No one cares? Let me know if you know the answer about this question.

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**Author:** ![RobertFisher](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/robertfisher/32/1487_2.png) [@RobertFisher](https://forums.collective2.com/u/RobertFisher)\
**Post date:** [January 11, 2017, 5:39pm UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119/3 "2017-01-11T17:39:35Z")

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Is this the secret spot no one want to talk about?

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**Author:** ![c2-auto-trader](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/c2-auto-trader/32/21425_2.png) [@c2-auto-trader](https://forums.collective2.com/u/c2-auto-trader)\
**Post date:** [January 11, 2017, 5:49pm UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119/4 "2017-01-11T17:49:08Z")

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Required margin for IB:

[https://www.interactivebrokers.com/en/index.php?f=marginnew&p=opt1#options-ca-03](https://www.interactivebrokers.com/en/index.php?f=marginnew&p=opt1#options-ca-03)

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**Author:** ![RobertFisher](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/robertfisher/32/1487_2.png) [@RobertFisher](https://forums.collective2.com/u/RobertFisher)\
**Post date:** [January 11, 2017, 6:09pm UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119/5 "2017-01-11T18:09:26Z")

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Andrey thanks for the link.  
But i find if it is "Put Price + Maximum (((30% \* (Underlying Price) - Out of the Money Amount), 10% \* Strike Price) ".  
It looks the C2 account allows the traders do more than this.  
E.g. would like to write 100 naked put of SPY at the strike price of 226. The premium I can collect is 0.3 $ per share.  
The required margin is about (not precisely):  
(226\*0.3+0.3)_100_100=681000 $

For the C2 account if you have 500000$ , you can still do the same trade.

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**Author:** ![RobertFisher](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/robertfisher/32/1487_2.png) [@RobertFisher](https://forums.collective2.com/u/RobertFisher)\
**Post date:** [January 11, 2017, 6:11pm UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119/6 "2017-01-11T18:11:26Z")

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I guess i just need to look at the buying power to make sure it is always positive to avoid a margin call.

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**Author:** ![c2-auto-trader](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/c2-auto-trader/32/21425_2.png) [@c2-auto-trader](https://forums.collective2.com/u/c2-auto-trader)\
**Post date:** [January 11, 2017, 6:43pm UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119/7 "2017-01-11T18:43:24Z")

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Search the forum, I am sure this was already discussed.

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**Author:** ![PureTrade78](https://yyz2.discourse-cdn.com/flex028/user_avatar/forums.collective2.com/puretrade78/32/1487_2.png) [@PureTrade78](https://forums.collective2.com/u/PureTrade78)\
**Post date:** [January 12, 2017, 3:00am UTC](https://forums.collective2.com/t/the-margin-requirement-for-naked-put-writing-on-c2/9119/8 "2017-01-12T03:00:29Z")

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I agree that this is an issue with the “autotrade” feature. To manage margin requirements I manually trade my account. I can’t see how you could possibly autotrade anything but stock only strategies. Some strategies also short certain securities which my broker wouldn’t let me short.
