Minimum and SPAN margins for options selling

Discussion in 'Options' started by LordMib, Apr 21, 2010.

  1. LordMib

    LordMib

    Yes, I've read on this forum about PC-SPAN. But it's only a margin calculator. Once I get theoretical margin level form PC-SPAN, I have to find a broker that offers me the same margin.

    What broker do option sellers use? IB, OXpress, ToS?

    Thanks.

    LM
     
    #11     Apr 22, 2010
  2. MTE

    MTE

    You are missing the point. All options on futures are margined according to SPAN and this is what the brokers will give you.
     
    #12     Apr 22, 2010
  3. LordMib

    LordMib

    Sorry for my misunderstanding. All options on futures are margined with SPAN by exchange, but broker can add other margin? In practice, can I be sure that every broker (the top ranked option brokers) demand me exactly the margin required by exchange?

    LM
     
    #13     Apr 22, 2010
  4. ids

    ids

    You have a point. Every broker has a right to set higher margins. SPAN margin indicates only minimal overnight rate.
     
    #14     Apr 22, 2010
  5. LordMib

    LordMib

    Perfect ids, but probably every broker has his own margin policy that can be option-selling friendly or not. I'm searching for some names of option-selling friendly broker.

    It's simple, what broker does naked option sellers usually use?
     
    #15     Apr 23, 2010
  6. klenko

    klenko

    short strange example: short mar CL(oil) 75 put & mar CL 107 call.

    IB margin=$3800, ThinkOrSwim and OptionsXpress margin=$915,
     
    #16     Jan 23, 2011
  7. I am noticing the same thing.

    IB SPAN margin for future options (es ) is substantially higher than Thinkorswim. Is there a reason why IB charges is so much more ?

    ( At the same time IB commissions on the emini are much lower than Thinkorswim )
     
    #17     Jan 25, 2011
  8. Dael

    Dael

    Hello. Where can I find margin requirements you posted above? I mean, technically, where to see them in TOS client?

    Here's TOS screenshot, I've got 'BP Effect' which means margin (true?). So to calculate margin for strangle I have to take BP Effect for one leg and add premium from another?
     
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    #18     Feb 9, 2011
  9. is there a way to self-calculate the SPAN margin per selling a naked futures put or call option without having to continually ask your futures broker? My platform does not offer nor configure this so would have to ask on every sell naked futures option thought....thanks for any help...is there a calculator online somewhere?
     
    #19     Jul 10, 2011
  10. For real example...what would the SPAN margin be per 1 contract of the following futures options (both are naked)...

    sell naked 1 August 90 strike put CL (oil) which expires on 7/15/11

    and

    sell naked 1 July 1310 strike put ES (mini sp 500) which expires on 7/15/11

    thanks in advance...
     
    #20     Jul 10, 2011