spx margin

Discussion in 'Options' started by met1989, Sep 19, 2019.

  1. met1989

    met1989

    is it possible to trade the spx options with margin the same way as ES options trade ? cause i don't have 100000 to open a portfolio margin account
     
  2. Paraphrasing the question: Is it possible to play Russian roulette with all chambers loaded?
     
    taowave likes this.
  3. met1989

    met1989

    how is that even close to the question ?
     
  4. FSU

    FSU

    Not that familiar with ES option margin, but SPX margin without a PM account can be very high. Anytime you are short units or short a time spread, you are going to have high margin. Don't know of anyway around it.
     
  5. Sig

    Sig

    It's not clear what a portfolio account has to do with SPX options? If you want to minimize your outlay you can always trade vertical spreads. A 5 point spread has only a $500 max cost/loss per contract.
     
  6. I think the OP wishes to increase his leverage beyond Reg-T, which is possible with PM, but allows one to over-leverage. His reference to SPAN margin (via Futures accnt) suggests the increased leverage is what he would like.
     
  7. Sig

    Sig

    If you're just trading SPX options, your leverage is going to be the same under Reg-T and PM, no?
     
  8. No! The PM Margin is computed different from Reg-T (even for a single underlying). I forget the formula (which can vary broker to broker). I do NOT have PM accounts, as I do not want this "feature" (which can bite when the margin is dynamically re-assessed)!
     
  9. Sig

    Sig

    I don't see why PM margin would be calculated differently for a single underlying. The word "Portfolio" in "Portfolio Margin" is there for a reason, it's reducing margin if the portfolio reduces risk compared to the risk of each component of the portfolio alone. If you've got only one option in your "portfolio" you haven't got a "portfolio"! I'm sure Robert knows the answer on this one though, hopefully he'll let us know.
     
  10. met1989

    met1989

    But if your selling one put on spx of you havePM U WONT NEED 125000k u will only need to put 22000 Aprox... get the point ?!
     
    #10     Sep 19, 2019