thanks for getting back. i guess i need to study up more on the dynamics as clearly i thought it would be inverted by now and 1) it isn't 2) you understand why it isnt.
i've gotta thank some users here as i closed legs of my fly at different times. i legged out of the short calendar aug/sep leg at 0.37 a few days ago. i finished the rest of the position (the long sep/oct spread) at 0.43. the net pnl turned out to be pretty good, but i owe some credit to both sellindexvol and rallymode for helping me to realize a problem in my position. i still liked the long leg, but given that calendar spread margins are increasing close to 6x tomorrow, i wanted to sit out and see if it has any impact on liquidity and moves spreads around a bit. seeing as its almost the end of June, i will shortly post my YTD performance. the past month has been very vital to my learning and i havent performed as well as i would have liked. hope others have done better and thanks for following
http://cfe.cboe.com/framed/PDFframe...9.pdf§ion=SEC_ABOUT_CFE&title=CBOE - CBOE it seems almost hidden.. as it wasn't posted on the "margins" tab yet.
Rally I emailed u this morning..permit holder margin circular gets it first apparently.. u most certainly have it in your inbox. I was on phone half the morning with CFE..they confirmed it. I can resend if u need it. This is a game changer if they implement. All day today I reduced. Shout out to NJ rookie who clued me in..thanks again.
I am a TPH and got no such notice. Even if i did, 6x increase with a 2 day notice - LOL The CFE can kiss good bye to their ever increasing volume and OI if they don't reverse this insanity. It's absurd to have the front spread with a margin req pretty much in par with the outright. This notice is a complete joke. Too bad it isn't April 1.
Did anyone get a reason as to why they are doing this!? Seems like a drastic move unless some things have blown-up behind the scenes that are prompting this...
OCC wants it "from their MC model and due to current market environment". A bunch of gvmt acad quant type who had no idea what is going on.
I am not a conspiracy buff but this has a hidden agenda written all over it. I will be very interested in doing some digging around in my circles when i get back from vacation.