He sold the puts at 0.07? $5.4 net? He mentioned a credit of $380 so I assume he means net of commission.
He didn't sell the puts at 3.8 per. He's referring to the proceeds from the 70-lot from 5.4 net per contract.
Yes, agree with other posters. Your maintenance is usually about 1/4 to 1/5 of the notional value of the contracts. If the notional value was 130k, there is no way you put that on for 380 dollars. Move the decimal place to the right a few times.
I shorted 70 put contracts. The price was $0.054 per put each contract represents 100 shares of underlying so $5.40 per contract X 70 = $378 in premium that i collected and will keep if it expires above $19. if those contracts expire under the strike price then i will have to buy those shares as i understand it. With 70 contracts that is 7,000 shares @ $19 strike so $133,000. If i am wrong please let me know.
Wow lol like others have said there are some missing decimal points somewhere here. What was the actual initial contract price? I am thinking it had to be 5 cents, not 5 dollars unless you sold years ago or something!
I don't know who you're clearing, but you're going to need $66,500 clear on Monday. I assume that your broker may buy to close the position prior to today's bell if you're not able to fund the assignment.