How Does the Margin for a Short Put Option Differ from a Short Call Option? ▴ Learn

How Does the Margin for a Short Put Option Differ from a Short Call Option?

The margin for a short (uncovered) put option is calculated based on the potential loss if the underlying asset price drops to zero. The margin for a short (uncovered) call option is calculated based on the potential loss if the underlying asset price rises indefinitely.

Both require margin to cover the substantial or unlimited risk.

How Does a Short Put Differ from a Long Call in Terms of Payoff?

What Is the Maximum Loss Potential for a Short Call Option?

What Is the Difference between Buying a Put Option and Selling a Call Option in a Bearish Strategy?

Why Is the Maximum Loss for an OTM Option Seller Theoretically Unlimited?