Capital at Risk (Options)

What is Capital at Risk?

Capital at Risk answers: How much of my account is tied up in options positions right now? The calculation differs based on position type.

Learn more: Options Greeks Guide | Options Command Center | Greeks Analysis

For Long Options (Bought Calls/Puts)

Capital at Risk = Premium Paid x Contracts x 100

Example: Buy 2 AAPL Jan 2026 200 Calls at 15.50
Capital at Risk = 15.50 x 2 x 100 = 3,100 dollars

This is your maximum possible loss if options expire worthless, you lose 3,100 dollars.

For Short Options (Sold Calls/Puts)

Capital Reserved = Strike Price x Contracts x 100

Example: Sell 1 TSLA Dec 2025 250 Put
Capital Reserved = 250 x 1 x 100 = 25,000 dollars

This is how much cash you need if assigned (to buy 100 shares at 250).

Why Short Options Show Larger Numbers

A 3 dollar premium on a 200 put might seem small. But if assigned, you're obligated to buy 20,000 dollars worth of stock! The dashboard shows Capital Reserved (strike-based) for short puts your true capital commitment.

TradesViz Capital Visualization

The Options Command Center provides:
* Capital by Strategy (Pie Chart): Percentage allocated to each strategy
* Capital by Underlying (Treemap/Bar): Concentration risk by stock
* Toggle Views: Switch between treemap and bar chart

If TSLA takes up half the treemap, half your capital is at risk on one underlying.