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SPX / SPY portfolio margin requirements
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SPX / SPY portfolio margin requirements

  #1 (permalink)
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SPX / SPY portfolio margin requirements

I'm a long time trader / investor and plan on opening an account with a broker who offers minimum margin requirements on options. Based on threads I've read here, IB and OX don't offer exchange min margins. I am currently with IB. Until I open a an account that qualifies for portfolio margin, I don't know where I can calculate exact (or near to exact) margin requirements for a few simple positions. I have also read the thread about SPAN margins, but this doesn't apply to CBOE instruments.

Here are my questions:

1) What would the exchange minimum, portfolio margin requirements be on the following trades...
a) Short SPX Jan14 1600 Put
b) Short SPX Jan14 1900 Call
c) Short the above 2 as a strangle

2) Is there somewhere I can get the margins myself before I open my portfolio margin qualifying account?

TIA.

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  #2 (permalink)
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  #3 (permalink)
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mu2pilot View Post
I'm a long time trader / investor and plan on opening an account with a broker who offers minimum margin requirements on options. Based on threads I've read here, IB and OX don't offer exchange min margins. I am currently with IB. Until I open a an account that qualifies for portfolio margin, I don't know where I can calculate exact (or near to exact) margin requirements for a few simple positions. I have also read the thread about SPAN margins, but this doesn't apply to CBOE instruments.

Here are my questions:

1) What would the exchange minimum, portfolio margin requirements be on the following trades...
a) Short SPX Jan14 1600 Put
b) Short SPX Jan14 1900 Call
c) Short the above 2 as a strangle

2) Is there somewhere I can get the margins myself before I open my portfolio margin qualifying account?

TIA.

Here is what is offered by TD Ameritrade... I suppose the portfolio margin requirements must be similar with other brokers.

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Here are some examples from CBOE (http://www.cboe.com/micro/margin/margin_req_examples.pdf).

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Last edited by shanmugs; November 16th, 2013 at 09:26 PM.
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  #4 (permalink)
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Thanks Shanmugs!

I had seen the CME page you posted. If you break their examples down to a single strangle, the margin is quite a bit higher than what your screen is telling you. Is that because their example is much closer to ITM?


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  #5 (permalink)
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mu2pilot View Post
Thanks Shanmugs!

I had seen the CME page you posted. If you break their examples down to a single strangle, the margin is quite a bit higher than what your screen is telling you. Is that because their example is much closer to ITM?


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I think you are right. When you get closer to the price, the buying power effect increases.

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  #6 (permalink)
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IB Margin Impact

IB Margin Impact TWS: http://ibkb.interactivebrokers.com/article/644

Preview Order / Check Margin

The Preview Order/Check Margin feature offers the ability to review the projected cost, commission and margin impact of an order prior to its transmission. This feature is made available in both the TWS and WebTrader, with the TWS version providing greater detail.

Trader Workstation (TWS)
The TWS Check Margin feature provides the ability to isolate the margin impact of the proposed order from one's existing positions and also displays the new margin requirement on the assumption the order is executed. Key margin balances including the Initial and Maintenance Requirements are reported as is the Equity With Loan Value. To use this feature, place your cursor on the order line, right-click on the mouse button and select Check Margin from the drop-down menu.

Example: Buy 1 ES June 2012 Future @ 1387.25
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In case of a strangle you could create a COMBO using the combo module, after which you can follow the same steps as listed above to retrieve the margin requirements.

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  #7 (permalink)
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Thanks, Cogito ergo sum, for posting that. Unfortunately, IB's margin requirements for options on futures are not competitive and are substantially higher than exchange minimums. So, the numbers that you get from them aren't indicative of what is available at other brokers.

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  #8 (permalink)
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mu2pilot View Post
Thanks, Cogito ergo sum, for posting that. Unfortunately, IB's margin requirements for options on futures are not competitive and are substantially higher than exchange minimums. So, the numbers that you get from them aren't indicative of what is available at other brokers.

mu2pilot, I misread your post. Indeed, IB requires far more than exchange minimums.

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