Long Stock + Short Call, and the quantity of the underlying stock is same as the contract size of the call option.
Market Value of Long Stock × Long Stock Margin Requirement + In-The-Money Amount of Short Call × (1 - Long Stock Margin Requirement)
A. If you open a covered call by placing a two-leg order, the buying power required will be the margin requirement calculated using the above formula, plus the trading fees and subtracts the option premium you'll receive.
B. If you hold enough shares of the underlying stock and then sell to open an out-the-money call, or the underlying is non-marginable, the selling order of the call will also apply the margin reduction with no buying power required.
C. If you hold enough shares of the underlying stock and then sell to open an in-the-money call, and the underlying is marginable, the selling order of the call will apply the margin reduction and release an amount of buying power after the order submitted.
Notes:
● If no margin reduction is applied, it may be caused by holding insufficient shares or pending order of closing the underlying stock position.
● The margin and buying power requirement are subject to adjustment by Moomoo from time to time according to market condition.
Short Stock + Short Put, and the quantity of the underlying stock is same as the contract size of the put option.
A. If you open a covered put by placing a two-leg order, the buying power required will be the margin requirement calculated using the above formula, plus the trading fees and subtracts the option premium you'll receive.
B. If you hold enough short position of the underlying stock and then sell to open an out-of-the-money put by placing a single-leg option order, the order will also apply the margin reduction with no buying power requirement.
C. If you hold enough short position of the underlying stock and then sell to open an in-the-money put by placing a single-leg option order, the order will apply the margin reduction and release an amount of buying power after the order submitted.
Notes:
● If no margin reduction is applied, it may be caused by holding insufficient short position of underlying stock or pending order of closing the short position of underlying stock.
● The margin and buying power requirement are subject to adjustment by Moomoo from time to time according to market conditions.
Vertical Call Spread: Long Call + Short Call (same underlying stock, expiration date and contract size, but different strike price)
Vertical Put Spread: Long Put + Short Put (same underlying stock, expiration date and contract size, but different strike price)
Vertical Call Spread: Max(Long Call Strike – Short Call Strike, 0) × Contract Size
Vertical Put Spread: Max(Short Put Strike – Long Put Strike, 0) × Contract Size
A. If you open a vertical spread by placing a two-leg order, the buying power required will be the margin requirement calculated using the above formula, subtracts the net premium you'll receive(or plus the net premium you'll pay), and plus the trading fees.
B. If you hold a long position of call(put) and then sell to open a call(put) with a higher(lower) strike price, the short sell order of call(put) will also apply the margin reduction with no buying power required.
Notes:
● If no margin reduction is applied, it may be caused by holding insufficient long options or pending order of closing the long option position, or a different contract size.
● The margin and buying power requirement are subject to adjustment by Moomoo from time to time according to market conditions.
Long Straddle: Long Call + Long Put (same underlying stock, expiration date, strike price and contract size)
Short Straddle: Short Call + Short Put (same underlying stock, expiration date, strike price and contract size)
Short Straddle:
① If the short call has a higher margin requirement: Short Call Margin Requirement + Short Put Price × Contract Multiplier
② If the short put has a higher margin requirement: Short Put Margin Requirement + Short Call Price × Contract Multiplier
A. If you open a long straddle by placing a two-leg order, the buying power required will be the trading fees plus the total premium of options.
B. If you open a short straddle by placing a two-leg order, the buying power required will be the margin requirement calculated using the above formula, subtracts the net premium you'll receive, and plus the trading fees.
Note: The margin and buying power requirement are subject to adjustment by Moomoo from time to time according to market conditions.
Long Strangle: Long Call + Long Put (same underlying stock, expiration date and contract size, but the put strike price is lower than the call strike price)
Short Strangle: Short Call + Short Put (same underlying stock, expiration date and contract size, but the put strike price is lower than the call strike price)
Long Straddle: 0
Short Strangle:
① If the short call has a higher margin requirement: Short Call Margin Requirement + Short Put Price × Contract Multiplier
② If the short put has a higher margin requirement: Short Put Margin Requirement + Short Call Price × Contract Multiplier
A. If you open a long strangle by placing a two-leg order, the buying power required will be the trading fees plus the total premium of options.
B. If you open a short strangle by placing a two-leg order, the buying power required will be the margin requirement calculated using the above formula, subtracts the net premium you'll receive, and plus the trading fees.
Note: The margin and buying power requirement are subject to adjustment by Moomoo from time to time according to market conditions.
Long Collar: Long Stock + Long Put + Short Call (same expiration date, same underlying stock, Put Strike < Call Strike);
Short Collar: Short Stock + Short Put + Long Call (same expiration date, same underlying stock, Put Strike < Call Strike);
Long Collar: Market Value of Long Stock × Long Stock Margin Requirement + In-The-Money Amount of Short Call × (1 - Long Stock Margin Requirement)
Short Collar: Market Value of Short Stock × Short Stock Margin Requirement + In-The-Money Amount of Short Put
If you open a collar position by placing a three-leg order, the buying power required will be the margin requirement calculated using the above formula, subtracts the net premium you'll receive(or plus the net premium you'll pay), and plus the trading fees.
Note: The margin and buying power requirement are subject to adjustment by Moomoo from time to time according to market conditions.
Call Calendar Spread: Long Call + Short Call (same underlying stock, contract size and strike price, but different expiration date)
Put Calendar Spread: Long Put + Short Put (same underlying stock, contract size and strike price, but different expiration date)
① If the short option expires after the long option:
Call Calendar: Short Call Margin Requirement
Put Calendar: Short Put Margin Requirement
② If the long option expires after the short option:
Call Calendar: 0
Put Calendar: 0
A. If you open a short calendar spread by placing a two-leg order, the buying power required will be the short option margin requirement, subtracts the net premium you'll receive, and plus the trading fees.
B. If you open a long calendar spread by placing a two-leg order, the buying power required will be the net premium you'll pay and plus the trading fees.
C. If you hold a long position of call(put) and then sell to open a call(put) with an earlier expiration date and same strike price, the short sell order of call(put) will also apply the margin reduction with no buying power required.
Notes:
● If no margin reduction is applied, it may be caused by holding insufficient long options or pending order of closing the long option position, or a different contract size.
● The margin and buying power requirement are subject to adjustment by Moomoo from time to time according to market conditions.
Call Diagonal Spread: Long Call + Short Call (same underlying stock and contract size, but different expiration date and strike price)
Put Diagonal Spread: Long Put + Short Put (same underlying stock and contract size, but different expiration date and strike price)
① If the short option expires after the long option:
Call Diagonal: Short Call Margin Requirement
Put Diagonal: Short Put Margin Requirement
② If the long option expires after the short option:
Call Diagonal: Max(Long Call Strike – Short Call Strike, 0) × Contract Size
Put Diagonal: Max(Short Put Strike – Long Put Strike, 0) × Contract Size
A. If you open a diagonal spread by placing a two-leg order, the buying power required will be the margin requirement calculated using the above formula, subtracts the net premium you'll receive(or plus the net premium you'll pay), and plus the trading fees.
B. If you hold a long position of call(put) and then sell to open a call(put) with an earlier expiration date and a higher(lower) strike price, the short sell order of call(put) will also apply the margin reduction with no buying power required.
Notes:
● If no margin reduction is applied, it may be caused by holding insufficient long options or pending order of closing the long option position, or a different contract size.
● The margin and buying power requirement are subject to adjustment by Moomoo from time to time according to market conditions.