Chapter 04 · Section 4.1

OCC Margin System

OCC (Option Clearing Corporation) is the common clearing house of U.S. stock option exchanges. The formula for margins required by OCC exchanges is basically the following:

MARGIN = 20 % of the current value of the underlying stock  
         PLUS   100 % of the premium                               
         MINUS  the amount the option is out-of-the-money