Insane margin requirement for long put

I'm long NKLA puts $45 Aug21. The maintenance margin requirement is 3 times the value of the puts. WTF?

 

I guess I haven't been trading in options enough these days, as I didn't think there was an option requirement for long options. Maybe other than the cost of the options and you are buying them with margin.

 

Broker?

 

I'm assuming IB since he is posting in their forum.

 

Is that the only NKLA position you have?

 

No. I'm also short some calls.

 

Then the margin is in relation to the short calls not the long puts.

 

So you created a NKLA risk-reversal with that combination short call and long put. Nothing in IBKR that shows how that margin is calculated.

For all we know, they could be treating the synthetic as actual short stock and your bleeding the borrow rate twice over. (Crazy assumption.)

Though intuitively, your just risking some premium in addition. Make the call.

 

When you right click a position and show margin requirement, it shows how much your maintenance margin goes down if you liquidate that position, without touching any related positions. That's the number that's 3x the value of the puts. It should only be 1x, like every other broker in the known universe, unless they think I'm gonna hold it to expiration and take a big swing over the weekend after I get assigned.

 

What is it showing for your short calls?