What is a Real Estate Put Options margin requirement?

The Real Estate Put Options can only be sold by an investor with IRESE account.

At the time the option is sold by the Investor, the investor is not required to have any margin to cover a put lost, if any. The investor is required to keep 50% of the sale proceeds in IRESE account. The money can be used to purchase Real Estate Call Options or Real Estate Notes. A property is valued daily and based on a derived value, if the property value drops below a put option strike price, the investor is required 100% coverage of the potential payoff to cover the value of the options issued. The account margin can be used to cover the put payoff.

What is a margin requirement?

A margin requirement is a requirement by IRESE that allows investors to use their current positions to sell Real Estate Put Option. In a simplified example, an investor might sell a Real Estate Put Option and use up to 50% of the value of their entire positions as a collateral.

Real Estate Options are not marginable securities and have an initial rate and maintenance rate of 100%. Only Real Estate Notes are considered to be marginable securities.

Important: Selling Real Estate Put Options is not appropriate for all investors.

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