can someone explain margin requirements for vertical ratio spread for IB or thinkorsw

F

fredit

Hello, I am interesting in doing a vertical ratio spread.. I have the requirments right here.. but they I'm not 100% sure on requirements $ wise:

http://individuals.interactivebrokers.com/en/trading/marginRequirements/margin.php?p=o&ib_entity=llc

let's say for example.. I am looking to buy 1 nov08 135 put strike of bidu and sell 4 nov08 120 strike puts.. and the stock is currently trading at 178.89.

What would margin requirements be since this is a credit?
(nov08 120put = .18cents, nov08 135put = .55)

thanks for any input!
Lee
 
Quote from fredit:

Hello, I am interesting in doing a vertical ratio spread.. I have the requirments right here.. but they I'm not 100% sure on requirements $ wise:

http://individuals.interactivebrokers.com/en/trading/marginRequirements/margin.php?p=o&ib_entity=llc

let's say for example.. I am looking to buy 1 nov08 135 put strike of bidu and sell 4 nov08 120 strike puts.. and the stock is currently trading at 178.89.

What would margin requirements be since this is a credit?
(nov08 120put = .18cents, nov08 135put = .55)
More...

if you're under reg-t, it'll be 1200*3 + 150 + option premiums.
approx $4000
 
Quote from blackjack007:

if you're under reg-t, it'll be 1200*3 + 150 + option premiums.
approx $4000
More...

how did you get 1200? 10% of the 120strike*100?
I was under the assumption it was 20% requirments.. but then again.. idk :)


thanks!
Lee
 
If the put options move in the money does IB require you to have the full aggregate exercise price in cash? In this case that would be $36,000 for 3 contracts with a strike price of 120.

Assuming the possibility of 2 for 1 margin, would $18,000 suffice?
 
May I share an experience with IB? Despite what their Web site says, I found that they did not calculate margins based on spread positions until I requested portfolio margining. Prior to that, they calculated every short option's margin as if it were unhedged. So make sure to ask them for portfolio margining.

Mary
 
You must log in or register to reply here.
Back
Top