Any option position other than one outlined below is considered uncovered:
- Long call or long put;
- Covered call;
- Long call spread - Short calls vs equal quantity of long calls where the exercise price of the long calls is equal to or less than the exercise price of the short calls; or
- Long put spread - Short put vs equal quantity of long puts where the exercise price of the long puts is equal to or greater.
Examples of uncovered option positions include cash secured short puts, short (credit) call and put spreads, butterfly or iron condor positions.
Clients who maintain either a cash or margin type account must maintain net liquidating equity of at least USD 2,000 (or equivalent in other currencies) in order to establish or increase an existing uncovered options position.