Options margin question

Discussion in 'Options' started by robert111, Oct 12, 2017.

  1. zdreg

    zdreg

    self serving remark should have been left out of your response. you have a short fuse. it will not serve you well in trading.
     
    #11     Oct 13, 2017
    ironchef and lawrence-lugar like this.
  2. Overnight

    Overnight

    If you understand options very well, then why are you asking the question?
     
    #12     Oct 14, 2017
  3. darp

    darp

    Hi Bob, I put a trade on IB for a stock at 38 (atm roughly) a reverse Calendar spread and it seems to be using up abou $2000 of margin to my shock as maybe $70 max risk. I went into Etrade margin calculator and


    Open Calls
    Fed Call 0.00 -777.78 -777.78
    House Call 0.00 -194.00 -194.00
    Purchasing Power
    Marginable Securities 5.42 -3,892.54 -3,887.12
    Non-Marginable Securities 5.42 -1,633.50 -1,628.08

    Again maybe $70 risk but both brokers want arm and leg margin, even though a std cal sprd has just about the same risk and yet say $70 margin requirement.

    What would your firm require for margin on a $38x $38 rev cal sprd?
     
    #13     Jun 13, 2019
  4. Robert Morse

    Robert Morse Sponsor

    I assume this is a reg-t account and you sold the Longer dated option and bought the shorter dated option? Most brokers don’t recognize that as a full hedge in a reg-t account. I expect we are not much better. To get a real number, I need you to send the the exact spread with the cost of each leg to my email and I can have soMeone run that for me. I can only do PM as I know how to do that.
     
    #14     Jun 13, 2019
    drmark27 likes this.