Should YOU Use Margin When Trading Options? [PROS vs CONS]



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24 thoughts on “Should YOU Use Margin When Trading Options? [PROS vs CONS]”

  1. Interesting. For some reason I was always under the impression that margin was used when selling puts. So essentially margin would only be used if we are assigned the stock? If you continue to roll it you avoid using margin?

  2. Interesting insight on cash covered sale of puts. Having heard this, I will be more aware of my greed when choosing strike price. Thanks for the video!

  3. You should make a video where you tell the audience how you learned about options. You worked in IBD, but I don’t think you encountered options there

  4. I have never used margin before and I'm too scared too because I dont understand it completely. I always though margin was bad until I heard you talk about it. Thanks David

  5. I use RegT margin, but I'm interested in knowing what portfolio margin can do, when selling naked puts or put credit spreads. I know it can be very powerful when selling far OTM puts. For instance, Amazon is trading at, lets say 3500, and I sell a 2500 put. RegT would demand 25k buying power. Do you know what the portfolio margin ballpark demand would be? (I know depends on entire portfolio setup, but still..)

  6. Using margin is ok but make sure you have the cash, I am glad I always do, for example I was assigned 200 shares of TWTR (Today Nov. 23) on a put I sold and I was 59 DTE still, never would of thought this would happen I am glad I had the cash.

  7. When i was trading with just cash, i made about 2-3% while using majority of buying power. Now with margin, im getting about 3-4% consistently while keeping 50-70% buying power available. Its kinda crazy how much you can amplify your gains if you use margin appropriately!

    Side note, i have experience daytrading with 4x buying power and have experienced margin calls. So ive learned from experiences in the past. For new people with margin, be careful.

  8. No interest when trading options on margin? Nice. I pay a lot in margin interest when trading stocks.

  9. Every time I go to the comment section on Webull I see someone worried about Margin Calls because they bought options and their contracts are about to expire, and they're way out of the money. Using Margin to trade options. Not a good idea. Using Margin to day trade or buy options, terrible idea.

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