It's called the stupid. You're carrying two lot naked risk in the back which brings the req to $200K under RegT.

I usually just break it down into separate positions. You have a 2/2 bear put calendar spread and a 1/1 bull put calendar spread. The 1/1 bull put spread will turn into a 1/0 long put on feb10, and the 2/2 bear put spread turns into a 2/0 naked short on feb12 exp.
It's the usual 2/2,1/1,1/0,2/0 scenario.
Is this a practice account? With the naked short what's the margin requirements?
Feb 13 vols will be above 13% on Feb 12.
Is that was you mean when you say "microstructure"?
The only reason the curve is above x is that this genius position is carrying short ATM vol into CPI. Just brilliant. Feb 13 vol is sticky due to the implied figure on CPI so the vols will rise on that tenor. Market rallies and it will be skewed as well.
I was hoping you would chime in. Thanks
Quite alright, I've been following you for some time; I appreciate your straight forward no BS approach!Sorry, didn't mean to rip into you. I assume the worst; that ppl are using tenors with news to impact the edge figure.
Quite alright, I've been following you for some time; I appreciate your straight forward no BS approach!
This was just me playing around with analysis looking to gain understanding at what I was seeing... no position on
I usually just break it down into separate positions. You have a 2/2 bear put calendar spread and a 1/1 bull put calendar spread. The 1/1 bull put spread will turn into a 1/0 long put on feb10, and the 2/2 bear put spread turns into a 2/0 naked short on feb12 exp.
It's the usual 2/2,1/1,1/0,2/0 scenario.
Is this a practice account? With the naked short what's the margin requirements?