A Margin Scenario Question

Discussion in 'Options' started by Avantivaylan, Jul 1, 2013.

  1. Say I have $500K in my IB account ( using round numbers, lol )

    I sell 10 PUTS (naked) for SPY 150 - I get a total of $50K as premium. ($5K for each PUT)

    What is the absolute maximum I can further sell without EVER worrying about a margin call ?

    I'm thinking I have:

    $500K - $150K(in case I get assigned) + 50K(premium) =$400K

    so I could sell another 26 PUTs for SPY 150 = $390K to cover them fully ?

    And I would also get $130K premium for the 26 PUTs ?

    Are the above calculations correct ? I want NO leverage and am happy to be assigned SPY at $150.

    Love to hear your seasoned perspectives