That does help, thank you. Do they allow to selling ES option in an IRA acct? what about their margin? can you check the margin for selling ES 1850 PUT with expiration SEP 12?

Sorry I am late in responding. I have been busy. I don't think TOS allows naked puts in an IRA.

The ESZ4/EW4U4 1850 put (this morning 08/25/14) sells for $132.50 (one contract) with an expiration date
of 09/27/14, a delta of 0.064, and an IM = $2614 (one contract).

But for me this is too close to ES=1998. Too much risk. Also the ratio of (IM)/(premium sold) = 19.7
is too high.

Thank you, I checked IB, the IM=6782, MM=5426, I will transfer my money out for sure after reading about 60 pages of this thread so far:-)

Interesting quick way to measure the position, 132.5/2614=19.7 is too high, then what is the general number you use, do you mind to share? thanks!

Forgive me if this topic has been covered, maybe I should not ask so many questions before I finish this thread, just so much good information and so many great minds here:-)

PS: after reading a few more pages here, I feel like this number is around 16.

I may be mistaken, but I think Ron99 indicates the ratio of (IM)/(premium sold) < = 6 . Generally smaller is better.

Based on that credit I'm assuming you are doing 10 contracts.

Delta .0230. ROI based on my fees is 2.0% per month.

They're OK. ES may drop but I doubt it will drop enough in 32 days to force you out.

I sold 1250s on Friday.

Ron,

By reading so far on the 100+ page (I am still on 100+ pages now), I always see you have a quick ROI monthly on you positions, do you use some tools to calculate that for you? forgive me if this has been answered. Thanks.

PS: you answered in next post, it seems that you calculate it by yourself.

Ron,

By reading so far on the 100+ page (I am still on 100+ pages now), I always see you have a quick ROI monthly on you positions, do you use some tools to calculate that for you? forgive me if this has been answered. Thanks.

PS: you answered in next post, it seems that you calculate it by yourself.

I do find myself trading put options in CL that are $20-25 away from futures and $25-30 away on calls and ignoring delta for CL. Trading closer than that is just too risky for me.

Ron - why do you ignore delta for CL ?

Another q, pls : if an option that was around 0.03 delta when you sold it uses up all your 3x margin excess, roughly what will its delta typically have become at that stage ? 'Trying to understand how many futures contracts would protect the position, although I realise this is dynamic.