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The trades were made on 06/15. Margin was $3,000 for that time (so it reduces getting closer to expiration). For JUL options it's true that I'll take $300 premium, which gives 10% return on invested margin per month. I made a post on Posterous. Just some thoughts for myself. Read it, I bet...

Actually you have a misconception on options selling. Why would the other side (option buyer) give you a $300 premium for just a week holding of wide (i.e. 100% guarantee of not touching the strike) options? Just why? :) In example posted above I've got SEP 11 options (as you may see in the...

This is because of 2 main reasons. 1. NYMEX and/or CME substantially rised margin requirements for Light Sweet after Libyan intervention. So right after that the same strangle mentioned in your example cost not $1,000 but nearly $3,000 of margin. 2. When you make a strangle or iron condor...

You've said about 2-3 times of premium to margin ratio. Well this is asctual for very far month out-of-the-money options. For example, you could get this 2 ratio on some corn or wheat December futures having $500 premium for $1,000 margin (just an example). This is the way James Cordier uses...

Couldn't attach both files in one reply. So here's the ES trade.

I've done simulated trades in TOS for you. By the way, CL option expiring on 07/15 is JUL too, not AUG. So margin for CL will be $6,700 for near $100 premium, margin for ES will be $4,200 for miserable $12 premium, huh.

Nice shorting! :) I use the same approach selling far OTM options (preferring strangles actually). The only question I have is about margin requirements for this 10 lot naked shorts. What's it? Smth about $2,000 per contract, so $20,000 total? This is the only bad side I see in OTM selling...

Collective2 is a fat piece of pie. Why don't you try it? First month's for free (general rule there), then you can charge smth about $50-100 per user.

Hello. Where can I find margin requirements you posted above? I mean, technically, where to see them in TOS client? Here's TOS screenshot, I've got 'BP Effect' which means margin (true?). So to calculate margin for strangle I have to take BP Effect for one leg and add premium from another?