margin on short option positions

stochastix

stochastix

Why is the maintenance and initial margin requirements so high for VIX options on IB?

For instance, short VIX call 40 .. equity with loan $-1200 but my maintenance margin is -$28,149 and maintainence is -$25,696

so margin requirements roughly 20 times higher than the cash value?

Is this IB's thing or CBOE's ? Would portfolio margin change it?

https://www.cboe.com/learncenter/pdf/margin2-00.pdf

when I use this thing at CBOEs website https://www.cboe.com/trading-tools/calculators/margin-calculator it says my requirement is 20K, but IB is saying my requirement is 145K initial and 132K maintenance
 
deltaf0rce said:
Vaya con Dios.
More...
there is no god and i dont need 'him'. thanks for nothing.

https://www.cboe.com/ms/vix-options-specsheet.pdf

CUSTOMER STRATEGY-BASED MARGIN Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 20% of the aggregate contract value (current (spot or cash) index value x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating maintenance margin, use option current market value instead of option proceeds.) Additional margin may be required pursuant to Exchange Rules 12.3(h) and 12.10.
 
stochastix said:
there is no god and i dont need 'him'. thanks for nothing.

https://www.cboe.com/ms/vix-options-specsheet.pdf

CUSTOMER STRATEGY-BASED MARGIN Purchases of puts or calls with 9 months or less until expiration must be paid for in full. Writers of uncovered puts or calls must deposit / maintain 100% of the option proceeds* plus 20% of the aggregate contract value (current (spot or cash) index value x $100) minus the amount by which the option is out-of-the-money, if any, subject to a minimum for calls of option proceeds* plus 10% of the aggregate contract value and a minimum for puts of option proceeds* plus 10% of the aggregate exercise price amount. (*For calculating maintenance margin, use option current market value instead of option proceeds.) Additional margin may be required pursuant to Exchange Rules 12.3(h) and 12.10.
More...
You’re going to get castrated. Pls post pics. Gl.
 
Really, so whats your prediction for the VIX on Sep 15th? Do you use any stochastic volatility models ? Yeah, if the VIX goes to 46.12 on the 15th im down 11K .. futures also agreeing with me... if it hits 53.81 im down 45K... if it stays in 20 to 42.5 range im up 5.2K
 
Here is my required margin at IB on selling 1, 10 or 100 VIX Calls.
Negative value means that IB would release / give you the margin back, as you may be hedged by owning other VIX calls, options or instruments.

upload_2020-9-7_13-10-44.png


upload_2020-9-7_13-11-14.png


upload_2020-9-7_13-11-31.png
 
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