Currently, only Margin Relief for Covered Call strategies is available. Details are as follows:
Strategy Composition: Short call options + Long positions in the underlying stock corresponding to the contract size (must be in whole lots).
Margin Relief:
When holding a sufficient number of long positions in the underlying stock, selling out-of-the-money call options will not freeze the margin portion for the options.
When holding a sufficient number of long positions in the underlying stock, selling in-the-money call options will only freeze the margin amount for the order at the in-the-money amount * (1 - long position margin percentage of the underlying stock).
Additional Note: For risk control considerations, the overall margin for the strategy must not be lower than the option margin; therefore, the frozen margin for selling call options may be higher than the amounts mentioned above.
Note:
If you liquidate part of your position in the option strategy, the option strategy will be invalidated and you will no longer be offered margin relief, which may result in a decrease in the risk value of your account. Please ensure that you have sufficient funds in your account before liquidating your position in the option strategy as forced liquidation may occur when EL<0.
If you need to liquidate part of your positions in the option strategy, we recommend that you liquidate the option positions in the option strategy first in order to avoid an increase in margin caused by the liquidation action; if you liquidate the stock positions in the option strategy first but only partially filled, it will cause the option strategy to lapse and there will be both option positions and stock positions in your account, thus the sum of the margin of both positions will be higher than the margin requirement of the option strategy, which will increase the margin of your account.
Please note that the option strategies cannot currently be applied to some positions whose relevant symbols or contract multipliers have changed due to corporate actions such as split and merger. If a position in the option strategy is subject to such corporate action, this may result in the option strategy invalidating and thus increasing the margin requirement. Please ensure that you have sufficient funds in your account before liquidating your position in the option strategy as forced liquidation may occur when EL<0.