How much margin do I need to sell vertical spreads? Since I buy an option after I sell one, does the margin requirement shrink to my maximum loss on the trade? If I have 5k in a trading account how many vertical spreads could I sell on lets say BAC 1 month out- sell the 16 strike put and buy the 15 strike put?
you need more than 5k to sell profitably. btw, dont sell,, or sell very small. the real money is in directional. EF
yea I know, but I'm just slowly building up an account while I attend school. so conservative trades are the way to go for me.