Call credit spread assignment procedure

[newwurldmn]

portfolio margin may give more leverage but it works the same as reg t, minimum balance is required. can’t trade 4m size with 100k account. that’s that.

portfolio margin is different in that a long dated call is treated differently than a short dated one.

a spread is a spread until it’s not. Then the margin changes.

 

[Robert Morse]

This is new to me.

portfolio margin is different in that a long dated call is treated differently than a short dated one.

 

[newwurldmn]

This is new to me.

When they shock a 1y call isn’t the margin lower than when they shock a 1 month call?

 

[Robert Morse]

The OCC treats them the same, it is just that with the a shock for that product class, a short term option is more apt to be worth $0 than one with two years to go.

When they shock a 1y call isn’t the margin lower than when they shock a 1 month call?

 

[newwurldmn]

The OCC treats them the same, it is just that with the a shock for that product class, a short term option is more apt to be worth $0 than one with two years to go.

that’s what I meant. Same shock but different values because of gamma unlike reg t where margin is based on moneyness.