Can I sell a naked option?

Only Margin Accounts are able to sell a naked call option. Cash accounts can sell a naked put option, however there are certain restrictions.

Stock Options

Put Price + Maximum ((20% x Underlying Price - Out of the Money Amount),

(10% x Strike Price))

Index Options

Put Price + Maximum ((15% x Underlying Price - Out of the Money Amount),

(10% x Strike Price)

You can review and modify your account type in Client Portal.

Additional Information

Powered by IBot
What are futures options?
What are some bearish options strategies?
What are the limitations of a Cash Account for options trading?
Is it possible to disable naked short selling as a precaution?