Say I have $500K in my IB account ( using round numbers, lol )
I sell 10 PUTS (naked) for SPY 150 - I get a total of $50K as premium. ($5K for each PUT)
What is the absolute maximum I can further sell without EVER worrying about a margin call ?
I'm thinking I have:
$500K - $150K(in...
Many thanks to all of you. I'm intrigued by MTE's suggestion to put on a bull put spread instead.
<quote> I.e. you would sell a 160 put and buy a 155 put. </quote>
Question - wouldn't that increase the amount of margin on my account ?
Right now putting on the bull call spread is not...
155 AAPL Jan 2011 calls are trading for 50.90 ( ask )
160 AAPL Jan 2011 calls are trading for 47.30 ( bid )
If I buy the 155's and sell the 160's, I'm out of $360 for every pair of contracts.
I keep these (almost ) to expiration. Assuming AAPL is at $200 on Jan 17 2011, the values of...