Theoretical question: managing margin out of hours

Discussion in 'Options' started by tonyf, Jan 28, 2021.

  1. tonyf

    tonyf

    Let's consider a theoretical portfolio, PM account, 100% allocation to options, 100% sold premium.
    Now say that portfolio is utilising 90% of available initial margin. Volatility spikes overnight and trader watches with great pain her maintenance margin requirements shooting upwards.

    Now had the trader held stocks or other asset classes, she could have closed those positions out of hours pre-market before the IB liquidation bot kicks in. What can she do with options when unable to trade (pre-open) to manage her margin?

    P.s. not utilising 90% is obvious, but the question here is what to do when it's already done.