I had hoped to add a couple of plays today but after an early gain the futures are heading down again tonight. I am going to hold off on adding any new plays today.

We are flat and I am in no rush to add plays just to be adding plays. There is always another day as long as you have money left to invest.

Jim Brown



Current Portfolio


No Open Positions


Margin Requirements:

There are several different formulas for determining margin requirements for naked put writing. These are normally broker specific and some can require larger margin requirements than others.

Here is the most common margin calculation for naked puts.

100% of the option premium + ((20% of the Underlying Market Value) - (OTM Value))

For simplicity of calculation simply use 20% of the underlying stock price and you will always be safe. ($25 stock * 20% = $5 margin)