IB Margin on Iron Condors

[yip1997]

When will IB provide portfolio-based margin? Are there any account requirements?

 

[just21]

Quote from yip1997:

When will IB provide portfolio-based margin? Are there any account requirements?

good question, there are a lot of people waiting for news on this from IB.

 

[def]

Quote from just21:

good question, there are a lot of people waiting for news on this from IB.

We can't offer it until the regulators allow it. April might be a good guess.

 

[hopback]

Fimat has it now

 

[yip1997]

Quote from hopback:

Fimat has it now

Can you open a retail account in fimat? I thought they provide service to institutional clients only.

 

[hopback]

Mostly Institutional but there is a retail division.

Looks like they require $5 mil equity.

 

[roncer]

Steve,

I occasionally sell a put or a call on an OEX option. I have been shocked by the margin required! Selling a $1.00 put the margin is above $10,000 per each contract sold naked.

Am I missing something?

 

[thegazelle]

Imagine that you are selling an option on a 600 stock. A 10% swing in the stock means + or - $6000 loss if you are wrong. Now if you were selling an option on a $60 stock, the loss would only be $600 on a 10% swing not in your favor.

Its one of those things you just have to face with indicies. If you don't want it to eat your margin, buy an of the money option to make it a vertical. I.e. sell 670 call, but buy a 700 call to hedge. Your margin will only be 3K.

 

[roncer]

thegazelle ,

I only trade OEX options. And I occasionally want to trade a naked call or a put and have been blown away by the huge margin requirements at IB. DEF do you have any ideas?

 

[tct]

Try Options Express.....as long as the spreads are equidistant you will only have margin on one side.

www.optionsxpress.com