Naked Straddle Margin Requirements

I've written a program that models future stock volatility for all equities and have been trading on the long side via ATM straddles for the past 6 months.

Revisited the short side (options overpriced) recently and was hoping to get some ideas on how to trade. The most straight forward would be a naked ATM straddle but IB margin requirements are 3-10x your credit (portfolio margin acct). Here is how they calculate the margin:

Stock Options
Call Price + Maximum ((20% 2 * Underlying Price - Out of the Money Amount),
(10% * Underlying Price))

Are there other brokers that are less conservative (knowing this strategy carries plenty of risk) in the margin calculation?

I've back tested a variety of spreads (vertical/calendar/iron butterfly but you give up much of edge in attempt to reduce margin requirements (and risk).

Thanks,
Trevor

 

Why does 'naked straddle' always make me think of the 'iron condom' or whatever you call it.

 

ROFL

 

What about just buying some tails way out there? I usually do that, spending about 5% to 10% of the credit from the body of the spread. Peace of mind.