← Options Glossary This is potential maximum return you could make on an option trade. It's calculated by taking the maximum potential profit and dividing it by the margin requirement of the position. For example, if you sell a 100/105 call vertical for 2.00 credit, the return on capital would be the max profit of $200 divided by the margin requirement of $300. That yields a max return on capital of 66%.Click here to learn more.
Return On Capital
This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.