Margin on options arb/conversion

Discussion in 'Retail Brokers' started by UVXY20, Jan 10, 2024.

  1. #21     Jan 10, 2024
  2. Robert Morse

    Robert Morse Sponsor

    $175K to start and $150K maintenance.

     
    #22     Jan 10, 2024
  3. Robert Morse

    Robert Morse Sponsor

    #23     Jan 10, 2024
  4. Not sure I trade enough for you guys. Max this quarter would be 1000 to 2000 SPY a day with 10 to 20 collars a day.
     
    #24     Jan 10, 2024
    Quanto likes this.
  5. Robert Morse

    Robert Morse Sponsor

    We offer small retail accounts too. That promotion just requires funding of $25,000.

     
    #25     Jan 11, 2024

  6. So wouldn't margin calcs for options then include the expected move data which is based on DTE? Therefore DTE is a consideration?
     
    #26     Jan 11, 2024
  7. Robert Morse

    Robert Morse Sponsor

    First a note. Your profile says "Canada" and your regulators do not allow Canadian brokers to offer PM. And, we are not a Canadian broker. Now, the answer is no. It is a daily shock to protect the OCC guarantee to member firms as the OCC is the counter party to options. This TIMS calculation is meant to be the minimum capital required to protect members from customer losses. Based on EOD data, if the stock is up or down 15%, what would your loss be. TIMS is terrible and even the OCC knows it, which is why they expect house rules to make up for that. Days to expiration is not a factor when you look at a price change in one moment in time. IMO, SPAN margin for futures is much better and changes often.

     
    #27     Jan 11, 2024
    wxytrader likes this.