Margin Maintenance Q

[toshiaki]

One TSLA long call with a market value of $7,229 has a margin maintenance of 80-90k - why does this happen and what can I do to fix it in the future? I used the "show margin impact". I'm trying to get an understanding of why this is happening as this isn't the first time. Anyone have any insight?

In my portfolio I've also got a single TSLA iron cordor (1500/1550 and 1650/1700 with Aug 28 expiry) max loss 1,700 possible and the 1535/1635/1680 that's also in the screen shot that I'm closing today for profit.

 

[SunTrader]

Not an Ops guy but keep in mind TSLA will be splitting Aug 28th

 

[toshiaki]

And IB just liquidated my call? WTF I still had excess margin.

Post liquidation I sold my other tesla position at market instead of holding for max profit.

edit: thinking about it - maybe they were afraid that I wouldn't sell the options before close and I don't have sufficient cash in my account to hold the shares.

 

[guru]

Not sure what exactly happened here and I didn't have time to check my own margin requirements for that option during the day, but someone else mentioned similar issues:
https://www.elitetrader.com/et/threads/the-next-kodak-stock.348167/page-4#post-5169982

I bought the $410s for $1-$1.20, the $412.50 at $.30-.50s, $415s for $.20-$.40s and the $420s for pennies. The problem is Margin starts blanket selling after a certain time. Which brokerage allowed any size because Apple's final $12 jump was when Margin liquidates and IBKR locks you out of buying unless you have the BP.

 

[David's faith]

1st factor: TSLA stock split
2nd factor portfolio margin - if you are to extensively reliant on one Greek IB will punish that, as well as they punish the lack of diversification.
3d possible factor which I can not read from the screenshot is over reliance on foreign currency.

 

[IamaMars]

When I was just starting out in the market, I somehow wasn't very attentive to calculations, because it seemed to me that the most important thing here is to make a competent analysis of the market and everything else will develop by itself.
But in practice, I realized that the right risk management and the ability to divide your capital into parts is what can help you in your work, is what will save and increase your money. So I also became interested in what free margin should be so that I could keep up with a certain dynamics, work with a few orders, etc. And now I can say that I want to understand what it is and how it can help me.
So I encourage all my colleagues to deal with it, it can really be helpful.