|
PureBytes Links
Trading Reference Links
|
I believe that margin requirements are statutory. Below find requirements
for naked options per Interactive Brokers. This is reasonably easy to put
together in an excel spreadsheet to calculate margin requirements for each
position.
Earl
Short Naked Call Margin
a.. Initial and Maintenance: 100% * option market value + maximum (((20% *
underlying market value) - out of the money amount), 10% * underlying market
value, $250 * number of contracts). 20% above is 15% for broad based index
options. Short sale proceeds are applied to cash.
Short Naked Put Margin
a.. Initial and Maintenance: 100% * option market value + maximum (((20% *
(underlying market value) - out of the money amount), 10% * strike price,
$250 * number of contracts). 20% above is 15% for broad based index options.
Short sale proceeds are applied to cash.
----- Original Message -----
From: "John Cappello" <jvc689@xxxxxxx>
To: "BobR" <bobrabcd@xxxxxxxxxxxxx>; <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, January 05, 2003 1:00 PM
Subject: [RT] John Cappello uncovered Puts
> Dear Slawek,
>
> I do not know the answer for sure re. margin. What I have is a good
> deal from Saloman Smith Barney which permits me all of the trades I
> want for a flat fee at $282 per quarter. I have talked to their top
> option people and they can not give me a clear picture of the amount
> of margin needed per uncovered margin premium collected. At the end
> of each day I make a trade they credit my account with the premium.
>
> I currently have on board 12 uncovered options and 2 covered options.
> Technically my available margin should be $100,000 at this point
> assuming no options were on board in the particular account I am
> using.
>
> They have never told me I had a margin problem and the underlying
> stocks range from $15 to in the $50's and I am doing 10 options of
> each.
>
> Obviously I have an exit stategy if I do not see them expiring
> worthless, however if one were to calculate the total price of all
> the stocks if executed it would come to over $200,000. So I do not
> believe they calculate margin on that basis...and if their top people
> are not clear on the subject...I will continue until they give me
> feedback.
>
> Sincerely,
>
> John
>
>
>
> ------------------ Reply Separator --------------------
> Originally From: "BobR" <bobrabcd@xxxxxxxxxxxxx>
> Subject: Re: [RT] John Cappello uncovered Puts
> Date: 01/05/2003 10:47am
>
>
> Do you mean Mark Clemons of Premium Research Group?
> ----- Original Message -----
> From: SLAWEKP@xxxxxxx
> To: REALTRADERS@xxxxxxxxxxxxxxx
> Sent: Sunday, January 05, 2003 9:55 AM
> Subject: [RT] John Cappello uncovered Puts
>
>
> John,
>
> Could You give monthly % return on margin required to support
> those
> uncovered puts.
> Back in 1994 I was selling credit spread 3 months out on both puts
> & calls on
> OEX trying to get 2.5 points or better on 5 point spreads between
> strikes so
> my risk was 5 - 2.5(credit) =2.5(risk) or less.
>
> I learn that from one pro Marc Clemonts out of Chicago back in
> 1994. Market
> was range bound but he was getting constant $10.000 to $15.000 a
> month on
> $100.000 margin just using 3 month options credit spreads
>
> Slawek
>
> Yahoo! Groups Sponsor
> ADVERTISEMENT
>
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to the Yahoo! Terms of
> Service.
>
>
>
>
> To unsubscribe from this group, send an email to:
> realtraders-unsubscribe@xxxxxxxxxxxxxxx
>
>
>
> Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
>
>
>
To unsubscribe from this group, send an email to:
realtraders-unsubscribe@xxxxxxxxxxxxxxx
Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/
|