In Options Trading, How Does a Deep Out-of-the-Money Position Trigger a Margin Call?

A deep out-of-the-money (OTM) position, especially a short option position, can trigger a margin call if the underlying asset's price moves dramatically against the position. For example, a short put becomes highly risky if the underlying asset price plummets.

As the option moves closer to being in-the-money (ITM), the potential liability for the seller increases significantly. The broker recalculates the potential loss and raises the maintenance margin requirement, leading to a call.