Course Category

Margin II: Advanced Margin for Options - Online

Building on Margin I, this advanced curriculum covers the more complex margin requirements and calculations for various types of option positions, such as covered and uncovered puts and calls, index options, spreads, straddles, and combinations. It also teaches margin rules for day trading equities and options.

Please note that this is a curriculum of individual course modules. You will need to pass each module exam in order to qualify for a certificate of completion.

This is an asynchronous eLearning program that can be accessed 24/7 from any internet enabled computer.

• Recognize the concept of margin, the two customer account types, and the basic terminology used in margin trading.
• Identify basic option terminology and related transactions.
• Differentiate between long and short options
• Explain the execution of long and short options in a cash account
• Describe covered options
• Discuss how an escrow agreement is used in option trading
• Recognize the leverage benefits of trading with margin and options
• Determine how Regulation T and maintenance requirements affect long option purchases and sales in margin accounts
• Identify how same day substitutions, offsetting purchase and sale of long options, and margin for long listed options each affect
• Identify basic characteristics, regulations, and requirements of covered calls in margin accounts and compare level of risk with that of uncovered calls
• Recognize basic characteristics, regulations, and requirements of uncovered calls in margin accounts
• Perform margin calculations for in the money, at the money, and out of the money uncovered call options
• Calculate margin requirements for new vs. established uncovered calls
• Compute Regulation T excess and identify how to apply the results.
• Recognize what is meant by a
• Identify margin regulations and requirements that apply to covered and uncovered puts
• Calculate margin requirements and margin calls for uncovered puts
• Recall details about margin release from covering naked puts and from naked put expiration and assignment.
• Recall day-trading margin rules for equities
• Identify day-trading margin rules for options
• Determine margin requirements for more than one option day-trade in a day
• Define spreads, straddles and combinations. Calculate initial and maintenance margin requirements on spread transactions. Calculate initial and maintenance margin requirements on straddles and combinations
• Describe how breaking straddle/combination positions impacts margin requirements
• Recognize factors determining the best way to match options and stocks for margin purposes. Compare and contrast different types of index options and transactions using index options
• Identify the rules and regulations that govern index options in cash accounts. Recognize the rules and regulations that govern index options in margin accounts.