OOTM Option Spreads Margin

Discussion in 'Index Futures' started by unclescrooge, Aug 8, 2007.

  1. I generally sell Out of the Money spreads on future and stock indices. Say I do a 25 point spread on SPX on a 10,000 account. I would then dedicate up to 25% of my cash to margin selling put spreads.

    Is 25% dedicated to the future option spreads too risky if the market makes 50-100 point swing as in the last 2 weeks?