how do you determine margin needed for selling an out of money Futures option?...is there a certain calculation?...where do you find it?...or should you just ask your broker?...can you provide an example please...thanks in advance...
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how do you determine margin needed for selling an out of money futures option?
- Thread starter increasenow
- Start date
also...does the $$$ premium I received from the sale of the option go towards the margin needed to cover that sold option? I would believe it goes towards that full margin amount required...correct?
Quote from increasenow:
also...does the $$$ premium I received from the sale of the option go towards the margin needed to cover that sold option? I would believe it goes towards that full margin amount required...correct?
The $$$ from the sale would be added to your cash, but the current market value of the short option would be added to your margin requirement (which is a %age of the underlying).
thanks...I wish there was some sort of calculation I could do personally to figure a given margin required per selling an out of the money (or ITM) ES option...or, I guess I must "manually" ask my broker...as the only way...Quote from BeatingtheSP500:
The $$$ from the sale would be added to your cash, but the current market value of the short option would be added to your margin requirement (which is a %age of the underlying).
Quote from increasenow:
thanks...I wish there was some sort of calculation I could do personally to figure a given margin required per selling an out of the money (or ITM) ES option...or, I guess I must "manually" ask my broker...as the only way...
there is a formula, but your broker can change it over time, because it is done in a futures account. do you want to take that risk?