Two reasons... First you can buy long on SDS and it acts like a short. Second, it will have less margin impact.
Hmmm.. Bought 100 SDS this morning in a paper trade @ 69.38. It's now up to $70.05. This could be a day-trader's delight---if I day-traded.
Since spx and rut will settle next Friday (7/18) at open, does it mean our margin will be released right after the settlement price is set?
The options technically expire SATURDAY. My broker (IB) does not release margin until Monday. That feels normal. Can't release margin until after options technically expire. But, someone else here stated that TOS will release margin on Friday, if you call them. I don't understand how they can do that, but it can't hurt to ask. Mark
>Bought 100 SDS this morning in a paper trade That's why there is no liquidity. Everybody is paper trading it.
Your downside breakeven goes up quite a bit if you do this, you would have to be somewhat bearish to do this as you say.
Goes quick if you use a market order. Even with the wide b/a, you can still make money. SDS was @ $70.57 last I looked, up from $69.38 just before noon.
Doesn't SPX technically expire on Friday? You can't trade them after 4:15 on Thursday, they settle on Friday. So once the settlement number comes out expiration on those options is complete and you can get your margin released right?
BTO 20 SPX 1150 put STO 20 SPX 1165 put Net credit .50 ROM .5/14.5 = 3.45% nice spike in the VIX here going into the close, 15.22 off the low of 14.07 for the day
When I trade SPX on TOS my margin is released when the know what the SET price is. This is usually around lunch time on friday. George