how do you determine margin needed for selling an out of money futures option?

Discussion in 'Options' started by increasenow, Aug 30, 2008.

  1. how do you determine margin needed for selling an out of money Futures option? there a certain calculation?...where do you find it?...or should you just ask your broker?...can you provide an example please...thanks in advance...
  2. Tums


    With IB, it is a right click of the mouse on TWS.
  3. can you give me an platform does not offer that...use an ES September option.."way out of the money" if you sold 1 call or 1 much margin per that 1 sold contract...
  4. also...does the $$$ premium I received from the sale of the option go towards the margin needed to cover that sold option? I would believe it goes towards that full margin amount required...correct?
  5. can anyone help?
  6. The $$$ from the sale would be added to your cash, but the current market value of the short option would be added to your margin requirement (which is a %age of the underlying).
  7. thanks...I wish there was some sort of calculation I could do personally to figure a given margin required per selling an out of the money (or ITM) ES option...or, I guess I must "manually" ask my the only way...
  8. beep1


    there is a formula, but your broker can change it over time, because it is done in a futures account. do you want to take that risk?
  9. what risk?