What about the PMA margin req for this real stock, data just taken from YahooFinance: Ticker: SAVE LongStock: Price=15.95 ShortCall: Strike=15, ExpDate=2024-02-16 (DTE=37), Premium=5.35 LongPut: Strike=12.5, ExpDate=2024-02-16 (DTE=37), Premium=3.20
Max loss based on $13.80 is $130. I do not make up the PM numbers. And, Reg-T margin depending on how your broker pairs off the trade will be higher. Reg-T is not risk based. My system estimates REG-T margin at $399. That might not match your broker. It could be more.
Robert, thx! It makes a big difference, indeed. PMA looks very interesting, will need to read the fineprint... Btw, that's the PnL chart of the said trade: https://optioncreator.com/stfqol4
PM requires more money, higher financials, and more experience. Further information can be found on these websites: https://www.theocc.com/risk-management/customer-portfolio-margin https://www.finra.org/rules-guidance/key-topics/portfolio-margin/faq
I'm going into guest mode but the 12.5/15 call spread is 1.25 here. Ppl are ppl. Bob, GL dealing with these idiots.
Thx, just a final question regarding PMA margin req: Is the computed margin req kind of constant (static) for that trade, or can it vary with passage of time? Ie. is the procedure similar to ReqT which has 2 MRs: Initial MR and Maintenance MR ?
The OCC only does this math after the close based on the closing prices. So yes, if the stock is $5 or $16, the requirement would change. Our Risk/margin system estimates EOD values. REG-T is static. PM is not.