How much buying power do I need to copy options?

How sizing works

• You set a dollar amount, a percentage, or both. A percentage is applied to your current options buying power—not your total account value. If both are set, the smaller wins.
• That amount is divided by the cost (or collateral) of one contract and rounded down. Less than one contract means the trade is skipped.
• Buying power is read fresh from your brokerage each time. If it can't be confirmed, the opening copy is refused rather than guessed. Protective closes don't need buying power checks.
• Each strategy shows a suggested minimum (often $100). That's a starting point, not a guarantee every trade will fit.

Worked example: buying options

Options buying power $15,000, allocation 10% (no dollar cap). 10% is $1,500. The trader buys a call at $3.40, so one contract costs $340. $1,500 ÷ $340 = 4.4 → 4 contracts ($1,360). If the premium were $16.00 ($1,600 a contract), you'd get 0 and the copy would be skipped.

Worked example: credit spreads

For a defined-risk spread, the requirement is usually the spread width minus the credit. A 5-point SPX put spread opened for a $1.20 credit needs about ($5.00 − $1.20) × 100 = $380 per spread. With a $1,000 allocation that's 2 spreads ($760). Your broker sets the exact requirement, and it can differ.

Rough guide by trade type

• Cheap short-dated options: often $50–$500 per contract, so a few hundred dollars may fit one.
• SPX and other index options: premiums and spread requirements are frequently several hundred to several thousand dollars per contract.
• Short or naked options need margin approval and much more buying power; many accounts, including IRAs, can't place them.
• These are typical ranges only—check a strategy's recent trades for its real contract costs.

Choosing an allocation that fits

• Look at the strategy's recent trade prices and make sure your allocation covers at least one contract of its larger trades.
• Leave room: other open positions and unsettled cash reduce buying power during the day.
• Try your amount in a free paper practice account or the options trade model before going live.
• Only allocate money you can afford to lose; an allocation is not a cap on losses.

Related

If a trade didn't copy, read why a copied options trade gets skipped. See also the options copy-trading guide, IRA guide and FAQ.