VXX call short margin requirements

does anyone know whats up with margin requirements to short VXX calls.

its miniscule.... meaning. if i want to short september 60 strike calls.
1 short call costs me like 100-200 in margin....
there must be some catch? eh...?..
( and yes, i do know the dangers of naked call shorting and volatility on VXX, and that margin requirements are real time. dynamic. .they change by the minute)

 

Dude, posting 200 in margin to make 15 bucks? Was this a serious question?

 

You are not providing much information. What Firm are you at? Is it Reg-T or PM? The requirement from the OCC is only $38/contract for a PM account, from the minimum requirement of $37.50 (They round up). See attached.That strike is very far OTM.

1245

 

For Reg- it looks like: (I'm not sure if this is accurate for this option.)

Position
Short 1 Sep 60 call(s) at $0.15
Underlying stock at $29.00
Minimum applies in this case

Initial Margin
Margin requirement: $305.00
Proceeds from sale of short call(s): $15.00
Margin call (SMA debit): $290.00

 

thanks for the replies.. yes it is.. a PM account.. ..
that explains it..

 

I'm confused why the OP thought there was a catch as in that's some kind of a good deal

 

http://www.cookwithcampbells.ca/en-ca/RecipeThemes/mealsunder15.aspx