/biz/ - Business & Finance

>>23486516
>Does this mean my broker lets me sell up to 12 puts on TSLA at once even though I could only fully cover 1?
Yes. But you will have a shit time if the put gains value and your short positions move you over margin level. Essentially a small drop would get you a margin call.
>If I had for example 4 puts on TSLA open and all get assigned, will I get margin called or do I automatically make use of my $150,000 loan and pay interest on that?
Yes.
In case of doubt ask your broker.

My general rule is to never have options with more than twice my accounts value. This gives a healthy safety net. I tried 3x but I was sweating bullets all the time and 2x is way more comfy.