Short SVXY Put Margin Logic

Discussion in 'Interactive Brokers' started by dcwriter2, Mar 26, 2020.

  1. guru

    guru

    He can easily verify it by doing what I suggested.
    The losses cannot be unlimited when selling a put and anyone who doesn't know this shouldn't be trading.

    While here is the proof showing the required margin on my account for selling the same SVXY put and for couple expiry dates, specific to the portfolio, not a static number like $6K:

    upload_2020-3-26_12-28-16.png

    upload_2020-3-26_12-30-14.png
     
    #21     Mar 26, 2020
  2. zdreg

    zdreg

    Agreed, but I was in the mood for Black Magic.
     
    #22     Mar 26, 2020
    TooEffingOld, jys78 and guru like this.
  3. That was my original question.
     
    #23     Mar 26, 2020
  4. I think the IB requester margin was like $6150 or $6250 or something. Weird. I mean it's csh-secured, $2,000 max, right?
     
    #24     Mar 26, 2020
  5. I'm not sure what buying 100 shares of SVXY has to do with anything unless you are talking about buying a the strike price of 20, in my example.
     
    #25     Mar 26, 2020
  6. zdreg

    zdreg

    With options nearly always the underlying(stock) is the animal which wags the tail.(option).
     
    #26     Mar 26, 2020
  7. guru

    guru


    Because you have to do a bit of thinking and analyzing to get the picture and see whether the margin required for purchasing 100 SVXY shares is equal to its current price, or 3x the price, or 1/3rd the price, etc. This should relate to your attempt of selling the put. And that may be specific to your account/portfolio.
    My required margin for purchasing 100 shares of SVXY is $187.
     
    #27     Mar 26, 2020
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  8. Ever heard of sarcasm?
     
    #28     Mar 26, 2020
    jys78 likes this.
  9. There is something unlimited here, but its not losses

    Three guesses what it is
     
    #29     Mar 26, 2020
    Axon and jys78 like this.