The calculator below aid to estimate how many put options contracts could be sold short based on the defined funds allocated for uncovered options trading. We use the following formula in our calculations.
| Account value months ago | $50,000 |
| Stock Price | $100.00 |
| Strike Price | $100.00 |
| Options Price | $1.00 |
| Estimated Margin for 1 Pup contract | $2,600 |
| Estimated number of Pot options contracts that could be sold short with current account | 19 |
| Estimated Premium | $1,900.00 |
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.