The document discusses the transaction costs and margin requirements associated with options investing. It highlights that transaction costs can be higher for options than for underlying interests, especially in strategies involving multiple purchases and sales. Margin requirements are also detailed, particularly for writers of options, with emphasis on the need for collateral and the impact of market movements on margin calls.
documents/vol00010-efta01353447-pdf.pdf
{"document_type":"financial","document_subtype":"options investing","key_organizations":["Board of Governors of the Federal Reserve System"],"reference_numbers":["EFTA01353447"]}