Options buying power is the amount of money available to purchase an option. This amount may be lower for options than for equity securities because most equities have a 30% maintenance requirement and when buying options they have a 100% maintenance requirement. You can see the options buying power on the trade ticket when buying an option.
Options buying power calculation is equal to maintenance excess. The buying power will be calculated based on available funds and using a 100% maintenance requirement when purchasing options.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Options Disclosure Document. Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.