The only true hang-up to selling puts is that your broker will require cash on hand (in the money market part of your account) to cover your obligation. If you have a margin account, you’ll need to have around 30% of the amount needed to fulfill your obligation. If the stock is at $15, that’s between $3,000 and $5,000. The money market account will earn interest. If you have a lot of money in your account, they will be a little more lenient. They just want to make sure you can take care of your obligation to purchase the shares if you have to buy them.
The margin requirements for selling puts is actually 20%. Your broker will also hold the put premiums you’ve received (until the expiration date) minus any out of the money amount. It will come out around 25 to 35%. Other factors figure in, too. How many other stocks and options you own. How strong is your relationship? Each broker is different. Yes, they have strict SEC rules to follow, but they have their own concerns. The primary one being this: what is the exposure if there’s a major market downturn—say 30%? Can you purchase all you’ve requested to purchase, or is their neck on the line too? They will err on the side of caution.
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