OEX and XAU Options American Style Cash settled options
Due to recent market volatility, option trades and positions involving OEX and XAU options must be held in a level 6 approved option account with minimum account equity of $100K.
Long Stock: Equities between $3.00 and $6.00
Initial and Maintenance:
50% of purchase price
Long Stock: Equities above $6.00
Initial:
50% of the purchase
Maintenance:
30% of current market value (50% for concentrated accounts, when one security constitutes 50% or more of the account market value, 40% when one position constitutes 35-50% of the account market value and 35% when a position constitutes 25-35% of the account value).
Short Stock: Equities below $5.00
Initial and Maintenance:
The greater of: $2.50 per share
OR
100% of the market value + sale proceeds
Ally Invest does not allow new short positions on stocks below $3.00.
Short Stock: Equities above $5.00
Initial:
The greater of: $5.00 per share or 50% of the market value + sale proceeds
Maintenance:
The greater of: $5.00 per share + 100% of current market value
OR
40% of the position market value (50% for concentrated accounts, when one security constitutes 50% or more of the account market value) + 100% of current market value
Options: Short Uncovered (Naked) CALLS
IN and OUT of the Money CALLS Initial + Maintenance:
The greater of: 30% of the underlying MARKET price plus the premium minus any out-of-the-money amount
OR
15% of the underlying MARKET price plus the premium
Ally Invest maintains a minimum margin requirement of $100 per uncovered short options contract.
Options: Short Uncovered (Naked) PUTS
IN-the-Money PUTS Initial + Maintenance:
The greater of: 30% of the underlying MARKET price plus the premium
OR
15% of the underlying STRIKE price plus the premium
OUT-of-the-Money PUTS Initial + Maintenance:
The greater of: 30% of the underlying MARKET price plus the premium minus the out-of-the-money amount
OR
15% of the underlying STRIKE price plus the premium
Ally maintains a minimum margin requirement of $100 per uncovered short options contract.
Options: Covered Calls
Initial:
Initial margin requirement on long stock (50% of long stock position). Long underlying position must be valued at lower of current market value or call exercise price for margin equity purposes.
Maintenance Margin:
Maintenance margin requirement on long stock (30% of long stock position. 65% if concentrated).
Options: Covered Puts
IN-the-Money PUTS Initial:
Initial margin requirement on short stock (minimum of 50% of the short stock market value plus sale proceeds, please see above for short stock requirements) + the in the money amount of the short options.
IN-the-Money PUTS Maintenance:
Maintenance margin requirement on short stock (minimum of 40% of the short stock market value plus sale proceeds, please see above for short stock requirements) + the in the money amount of the short options.
OUT-of-the-Money PUTS Initial:
Initial margin requirement on short stock (minimum of 50% of the short stock market value plus sale proceeds, please see above for short stock requirements).
OUT-of-the-Money PUTS Maintenance:
Maintenance margin requirement on short stock (minimum of 40% of the short stock market value plus sale proceeds, please see above for short stock requirements).
Options: Credit Spreads/Short Verticals
Initial + Maintenance:
Difference between the strike prices multiplied by the number of contracts (x100).
Options: Short Straddles/Strangles
Initial + Maintenance:
The initial margin requirement for the short put or short call, whichever is greater, plus the premium of the other option.
Options: Short Call or Put Calendar Spreads
Initial + Maintenance:
Same requirements of the short call or put.
Options: Short Butterflies/Condors
Initial + Maintenance:
Same requirements of the short vertical spread of the butterfly or condor.
Options: Call or Put Back Spreads
Initial + Maintenance:
Same requirements of the short vertical component of the backspread.
Options: Call or Put Ratio Spreads
Initial + Maintenance:
Same requirements of the quantity of short options in excess of the quantity of long options.
Options: Short Box Spreads
Initial + Maintenance:
Initial margin requirement is the difference between the long and short strike prices.
Options: Short Iron Butterflies/Condors
Initial + Maintenance:
Initial margin requirement is on one of the short verticals of the iron wingspread.
Learn About the Risks of Options Trading
