future and option protection

[Mdtbyk]

Hey
what happens in such a scenario my account is 10000$.

i buy on ES at 2850 exp sep and the margin approx 6500$
and 1 ES put at 2830 expiring also in end of august for 1500$

my brokrage is IB

i wake up one day and the SP 500 crashed 250 points which makes up to

ES future is -12500$
and my ES option (give or take) +11000$

do i get a margin call on my account or because the option is protecting i won't get margin call ?

 

[tommcginnis]

Hey
what happens in such a scenario my account is 10000$.

i buy on ES at 2850 exp sep and the margin approx 6500$
and 1 ES put at 2830 expiring also in end of august for 1500$

my brokrage is IB

i wake up one day and the SP 500 crashed 250 points which makes up to

ES future is -12500$
and my ES option (give or take) +11000$

do i get a margin call on my account or because the option is protecting i won't get margin call ?

Some things to consider:

*Technically*, your put puts you $1000 behind your front-month ES future. At this time, there is no need for further effort. (If you're comfortable being $1,000 10% down on a $10,000 account. )

However, your PUT will go to cash (1 PUT::1 future contract) approximately 3 weeks before the future expires, leaving this now substantial (SPAN-wise) risk unprotected. That is not a situation you'd want to leave unaddressed. (In particular, as the PUT would likely stay at -1.0δ for the next 200+ points, even if the market V-bottomed, as you gained from the decreasing ES loss, you'd see the ES FOP similarly lose its positive value, dollar by dollar climb.)
Buying an ascending series of call verticals might be sweet, but....

In the end, as IB's retail-account risk parameters have been rather undefined (to be polite) these last 3-5+ years, it'd be wise to seek their counsel.

 

[Mdtbyk]

Some things to consider:

*Technically*, your put puts you $1000 behind your front-month ES future. At this time, there is no need for further effort. (If you're comfortable being $1,000 10% down on a $10,000 account. )

However, your PUT will go to cash (1 PUT::1 future contract) approximately 3 weeks before the future expires, leaving this now substantial (SPAN-wise) risk unprotected. That is not a situation you'd want to leave unaddressed. (In particular, as the PUT would likely stay at -1.0δ for the next 200+ points, even if the market V-bottomed, as you gained from the decreasing ES loss, you'd see the ES FOP similarly lose its positive value, dollar by dollar climb.)
Buying an ascending series of call verticals might be sweet, but....

In the end, as IB's retail-account risk parameters have been rather undefined (to be polite) these last 3-5+ years, it'd be wise to seek their counsel.

hey

so attached is what they answered i really do not know why i have so much money in a place that there rules are sooooo not clear