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Canadian Stock and Index Options
Back to Options Trading
FINRA and the NYSE have imposed rules to limit small investor (accounts with less than $25,000 in net equity) day trading. Clients that qualify as Pattern Day Traders are subject to Day Trading Restrictions for US Securities.
Please note that Place Trade utilizes option margin optimization software to try to create the minimum margin requirement. However, due to the system requirements required to determine the optimal solution, we cannot always guarantee the optimal combination in all cases.
The following table shows option margin requirements for each type of margin combination:
Combination Type |
Margin Accounts |
Cash Accounts |
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PT initial/Reg T End of Day |
PT Maintenance |
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Long Call or Put |
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None. Long option cost is subtracted from cash. |
None. |
None. Long option cost is subtracted from cash. |
Short Naked Call |
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Stock Options[1] |
Same as Initial. |
N/A |
Short Naked Put |
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Stock Options[1] |
Same as Initial |
Aggregate Put Strike Price. |
Covered Calls and Puts |
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Short an option with an equity position held to cover full exercise upon assignment of the option contract. |
Stock Initial Margin Requirement + In the Money Amount |
Initial Stock Margin Requirement + In the Money Amount |
Covered Calls |
Call Spread |
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A long and short position of equal number of calls on the same underlying (and same multiplier) if the long position expires on or after the short position. |
Maximum ((Strike Long Call - Strike Short Call), 0) |
Same as Initial |
Same as Initial if both options are European-style cash-settled |
Put Spread |
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A long and short position of equal number of puts on the same underlying (and same multiplier) if the long position expires on or after the short position. |
Maximum (Short Put Strike - Long Put Strike, 0)) |
Same as Initial |
Same as Margin Account |
Collar |
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Long put and long underlying with short call. Put and call must have same expiration date, same underlying (and same multiplier), and put exercise price must be lower than call exercise price. |
Initial Stock Margin Requirement + In the Money Call Amount |
In the Money Call Amount + Minimum (((10% * Put Strike Price) + Out of the Money Put Amount), (30% * Strike Call)) |
N/A |
Long Butterfly |
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Two short options of the same series (class, multiplier, strike price, expiration) offset by one long option of the same type (put or call) with a higher strike price and one long option of the same type with a lower strike price. All component options must have the same expiration, same underlying, and intervals between exercise prices must be equal. |
None |
Same as Initial |
None |
Conversion |
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Long put and long underlying with short call. Put and call must have the same expiration date, underlying (multiplier), and exercise price. |
Initial Stock Margin Requirement + In the Money Call Amount |
In the Money Call Amount + (10% * Strike Price) |
N/A |
Reverse Conversion |
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Long call and short underlying with short put. Put and call must have same expiration date, underlying (multiplier), and exercise price. |
In the Money Put Amount + Initial Stock Margin Requirement |
In the Money Put Amount + (10% * Strike Price) |
N/A |
Protective Put |
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Long Put and Long Underlying. |
Initial Stock Margin Requirement |
Minimum (((10% * Put Strike Price) + Put Out of the Money Amount), Long Stock Maintenance Requirement |
N/A |
Protective Call |
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Long Call and Short Underlying. |
If Trading Currency is CAD |
If Trading Currency is CAD |

Another way to look at the same information:
Long Put or Call |
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Short Naked Call |
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Shot Naked Put |
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Covered Calls and Puts |
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Call Spread |
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Put Spread |
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Protective Put |
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Protective Call |
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Collar |
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Conversion |
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Reverse Conversion |
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Long Butterfly |
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