does IB charge short strangle now as double margin??

Discussion in 'Retail Brokers' started by IndyJonerJr, Mar 27, 2019.

  1. Hi guys,

    maybe I haven't payed attention or maybe it was a dream in my head... I thought short strangles can't be double charged margin as "only one side can possibly lose" .. I swear I remember doing strangles and it only costing the higher of the margin side????
     
  2. Robert Morse

    Robert Morse Sponsor

    If you have a Reg-T margin account, the margin requirement does not provide an offset for naked short calls and puts. You need the full margin for both.
    If you have a PMA, the OCC only looks at the side that would cause the larger loss with a shock of 15% on an equity, not both.

    IB can require more margin but not less.