does IB charge short strangle now as double margin??

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IndyJonerJr

Hi guys,

maybe I haven't payed attention or maybe it was a dream in my head... I thought short strangles can't be double charged margin as "only one side can possibly lose" .. I swear I remember doing strangles and it only costing the higher of the margin side????
 
If you have a Reg-T margin account, the margin requirement does not provide an offset for naked short calls and puts. You need the full margin for both.
If you have a PMA, the OCC only looks at the side that would cause the larger loss with a shock of 15% on an equity, not both.

IB can require more margin but not less.
 
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