IB's portfolio margin for collar

[LM3886]

Greetings,

I found that IB's portfolio margin requirement is way higher for collar than a risk-equivalent call spread, sometimes 10 times higher for some stocks. The comparison is set up like the following:

K1 is the lower strike, S is the stock price, K2 is the higher strike.
K1 < S < K2

Collar: 100x stock + 1x put @ K1 - 1x call @ K2
Call spread: 1x call @ K1 - 1x call @ K2

Both strategy should have the same risk profile: _/▔. How would they have such different margin requirement? What am I missing? Thanks!

 

[destriero]

IB sucks. Period. A market maker in vol that doesn't understand synthetics.

 

[LM3886]

Any recommendations over IB? One with API.

 

[destriero]

I know it makes it tough to convert from D1 to a collar/synthetic bull spread (earnings, etc) when you have no idea WTF IBKR's haircut is going to be. Clown shoes. They have become a joke.

https://optionsroute.com/

I haven't used them but know someone who speaks well of them.

 

[LM3886]

Dumb question maybe: what did you mean by "D1"? Also, the reason I'm interested in the margin of collars is they seem to have a smaller slippage than call spreads.

 

[gowthamn]

IB sucks. Period. A market maker in vol that doesn't understand synthetics.

I am using TD ameritrade with portfolio margin and use their API.
I was thinking of moving to IB as the margins from TDA was higher than IB.
But in IB there is a 30% margin rule for concentrated positions. Do you know what that means?

 

[destriero]

Dumb question maybe: what did you mean by "D1"? Also, the reason I'm interested in the margin of collars is they seem to have a smaller slippage than call spreads.

Delta 1 (100). There should not be an advantage when trading two combos (synthetic and wings).

 

[destriero]

I am using TD ameritrade with portfolio margin and use their API.
I was thinking of moving to IB as the margins from TDA was higher than IB.
But in IB there is a 30% margin rule for concentrated positions. Do you know what that means?

That's on portfolio margin.

 

[gowthamn]

That's on portfolio margin.

Yes, I currently have portfolio margin with TDA.