Hey datahogg - Thanks for the information. I'm certainly going to investigate IB's conditions further. I recall recently reading that IB use SPAN for margin calculations but also have their own margin risk tool and apply which ever is the highest. This applies to Portfolio accounts of which I have one...Thanks again...
Hi, i'm new at this thread and i was try options on futures & Index options 3 years ago.
If you have this margin account i would suggest try index options whith Portfolio margin at TOS. Only making iron condors you can make a very good ROI , PM requirements are very low. Try it at demo and you'll see.
Option on futures , try only the most liquid markets (Corn, Soybean, Coffee ,CL, NG) and far OTM round strikes, low deltas, only use 1/4 max. balance exposure.
Very good thread, i will read all posts this holidays.
Hi Kaltrax / Becky - Thanks for the information. I keep hearing good things about the TOS platform although I did come across one post where their margins are apparently not real time which have apparently caused some unexpected margin calls for some highly margined individuals. I was thinking about the nakeds and short strangle with very low probability of being ITM at expiry. However, the killer with this approach with IB is the margin requirements which is why I was wondering what other brokers seem to do. I'll certainly do some further investigations and see how the compare...Thanks....
It sure looks to me like manipulation is going on in NG futures now like it did in April 2013.
Last April the price shot skyward. Far too high. And then it dropped 30 cents in one day.
This morning at 8:15am ET NG was down .060. Then it jumped up 15 cents from there. This pattern of down overnight then rising late in the morning has been happening several times lately. Strange.
The long range US weather forecasts have normal to above normal temps for the majority of the country 8-14 days out. US oil production hit a new 25 year high last week. So wells aren't being hampered much by the cold weather.
But as the saying goes, "the market can be wrong longer than you can hang in there" certainly applies here.
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Yeah this does feel a lot like April's manipulated move. Looking back over the last 20 years of MRCI data the most bullish move for this time of year (during a bull year which we currently aren't in) would be the volatility adjusted equivalent of a $1 move (which we'll see at the 4.4 level on the current NG contract). Technically, we have blown through several levels of resistance and are just under April's resistance level. We've had no significant pullbacks to talk of and this just feels like we're floating on air.
As you say - anything can happen. Personally, I've exhausted my 3X margin excess as of end of day today. I'm willing to hold this another 20cents. Contemplating whether it would be more capital efficient to ride it out or roll 'em up to 5.5s.