Options noob, but why does IB want nearly 3700$ for a 25$ option ??

Discussion in 'Options' started by TKOtrader, Jun 7, 2021.

  1. vanzandt

    vanzandt

    Sure you can.

    edit:
    Options
    Full payment must be made for all call and put purchases. Cash accounts allow for limited purchase and sale of options as follows:

    • Covered call writing is allowed, but the underlying stock must be available and is then restricted.
    • Naked put writing is also allowed, but the funds must be available and then are restricted.
    You must have stock cash trading permissions in order to have options cash trading permissions. Cash from the sale of options becomes available 1 business day after the trade date.
     
    #11     Jun 7, 2021
    VPhantom, jys78 and smallfil like this.
  2. def

    def Sponsor

    I suspect you have other positions?
     
    #12     Jun 7, 2021
  3. The text message is pretty clear: to add this new position to your existing positions you need a total account value of at least 4655 USD. Your current account only has 4600 USD. So you need an additional 55 USD to open this position.
     
    #13     Jun 8, 2021
  4. The 4600$ displayed refer to the margin requirements for your whole account including your other positions.
    Where do you see the 3700 figure anyway?
    On IB I can buy that call option with a margin requirement of 105$.
     
    #14     Jun 11, 2021
  5. Yeah, it probably means initial margin for ALL open positions. Not just this one. You're margin is at it's limit. I'd pull back already, bro. A bad move could cause liquidations.
     
    #15     Jun 12, 2021
    ITM_Latino likes this.
  6. The best way to get some answers here is to directly contact your broker and ask them why they are so keen on this. You can reach out to their customer service easily.
     
    #16     Jun 15, 2021
  7. This can’t be real! You really need to talk to your broker regarding this so that you can get an immediate solution to this.
     
    #17     Jul 14, 2021