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Strategies & Market Trends : Margin Calls - Share The Pain
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To: TradeOfTheDay who wrote (38)11/30/2000 11:24:16 PM
From: daffodil  Read Replies (1) of 158
 
Do you mean that Dreyfus is 20% for naked? (you said 20k)

This is equal to the NYSE requirements, which many firms adopt. Other firms have higher naked requirements.

WallStreetAcess could not have a 10% requirement, since this is less than the NYSE requirement.

I'm going to do nakeds in depth later, but as you already seem to know, the NYSE rule is:

for naked calls:

the option premium +
20% of the underlying stock value
minus amount out of the money,
subject to a minimum requirement of
the option premium +
10% of the underlying stock value.

for naked puts:

the option premium +
20% of the exercise price stock value
minus amount out of the money,
subject to a minimum requirement of
the option premium +
10% of the exercise price stock value.

In other words, nobody can impose 10% instead of the 20%. But a firm could impose a 20% minimum requirement instead of the 10%.
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