Wanting to compare TOS and IB margins for BWB

Discussion in 'Options' started by Bben1006, Jul 26, 2010.

  1. On the TOS platform I can price the RUT Sep call BWB 700/710/730 at $1.50 cr. (RUT 665.22, IV 32), and the required TOS margin is $850+$1,000=$1,850 (presumably—per FINRA). I wanted to compare this to the margin required by IB — but their customer service was not too helpful. Could anybody here who is an IB client, check on this directly on their platform (assuming SPAN and not PM, of course) and let me (us) know.

  2. MTE


    Options on RUT do not fall under SPAN, and the margin TOS gave you is actually Reg. T, so it is highly unlikely that IB will have a different margin requirement.
  3. Yes MTE, Reg-T, and I agree--But still, one would also think that it is highly unlikely that TOS would require anything else, but until a month ago, their required margin on a BWB (regardless of the underlying type) was only the max-risk. This is why I wanted to compare notes with those who use IB.
  4. MTE


    The problem is thinkrswim's clearing firm, which from now on requires butterflies/condors to be balanced (i.e. equidistant), anything unbalanced (aka brokenwing) are treated as two separate spreads and thus require double margin, which is ridiculous really.

    So I guess you are right, it is worth checking what IB offers.
  5. Thais is exactly the reason and point of my question. Hopefully some IB user here will oblige and will check on this—any example of a brokenwing BF/Condor will do.