CBOE Portfolio Margin Information
Press Release Dated Dec. 13, 2006
CBOE Regulatory Circular Re: Portfolio Margining of Customer Accounts (Dated Dec. 15, 2006)
SR-CBOE-2006-014 Amendment 2
SR-CBOE-2006-014 Amendment 1
Comparative Examples
For additional margin information, please also see the following web page:
http://www.cboe.com/Margin
Please note that the items below do not reflect the new portfolio margining rules that become effective in April 2007.
This online calculator contains a description of Exchange margin requirements for various positions in
put options, call options, combination put-call positions and underlying positions offset by option positions. The
equity and index option strategies available for selection in this calculator are among those most widely used by
investors. Margin amounts computed by this calculator reflect exchange-minimum requirements of the
Chicago Board Options Exchange. Margin amounts required by specific brokerage firms may be higher. Further, this
calculator's computations reflect only the Exchange's initial margin requirements; ongoing maintenance margin requirements may be necessary, and are
indicated where appropriate but not calculated.
This manual (in PDF format) has been developed by CBOE to assist the margin personnel of member
firms as well as to serve as a guide to all users of options. The requirements
explained here are based on publication date rules and regulations, and
therefore, subject to change. This manual should be used as a reference
document and is not intended to be an all-encompassing restatement of Federal
Reserve Board and Exchange margin rules. Persons using this manual should be familiar
with margin computational methods and procedures as well as the margin
requirements for all types of securities.
Visit the following page to access a brief summary of the margin requirements and escrow receipt program that apply to options traded on the Chicago Board Options Exchange (CBOE). This brief summary should only serve as a supplement to careful review of relevant CBOE rules and federal securities laws dealing with margin requirements.
Options involve risk and are not suitable for all
investors. Prior to buying or selling an option, a person must receive a copy
of Characteristics and Risks of Standardized
Options (ODD). Copies of the ODD are available from your broker, by
calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North
Wacker Drive, Suite 500, Chicago, Illinois 60606. The information on this
website is provided solely for general education and information purposes and
therefore should not be considered complete, precise, or current. Many of the
matters discussed are subject to detailed rules, regulations, and statutory
provisions which should be referred to for additional detail and are subject to
changes that may not be reflected in the website information. No statement
within the website should be construed as a recommendation to buy or sell a
security or to provide investment advice. The inclusion of non-CBOE
advertisements on the website should not be construed as an endorsement or an
indication of the value of any product, service, or website. The
Terms and Conditions govern use of this website and use of this website
will be deemed acceptance of those Terms and Conditions.
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