Thanks everyone for the posts. Even though my assumption was wrong, I still wanted to correct my math. It should be 1305 x .3, not 1350 x .3 . Duh. 1305 x .3 = 391.5 - 45 = 346.5 + 1.25 = 347.75 x 100 = $34,775 I know that is not the margin requirement, but I wanted to correct the math.
From IB site http://www.interactivebrokers.com/en/trading/marginRequirements/stockIndexOptions.php?ib_entity=llc 100% * option market value + maximum (((20% * underlying market value) - out of the money amount), 10% * underlying market value, $2.50 * multiplier * number of contracts). 20% above is 15% for broad based index options.
For the record, our margin was not for CBOE SPX. The margin was given by our CME SPAN margin calculator. Happy trading.
OK. It is just an interesting coincidence. It happens. Is the number 14,700 initial or maintenance margin?