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 case I get assigned) + 50K(premium) =$400K
so I could sell another 26 PUTs for SPY 150 = $390K to cover them fully ?
And I would also get $130K premium for the 26 PUTs ?
Are the above calculations correct ? I want NO leverage and am happy to be assigned SPY at $150.
Love to hear your seasoned perspectives
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 case I get assigned) + 50K(premium) =$400K
so I could sell another 26 PUTs for SPY 150 = $390K to cover them fully ?
And I would also get $130K premium for the 26 PUTs ?
Are the above calculations correct ? I want NO leverage and am happy to be assigned SPY at $150.
Love to hear your seasoned perspectives