What are the account minimums to sell one OTM SP 500 options (futures, not the index) with say 30 points between the short and long call? I imagine 30 X 250 or $7,500, right? But is there an additional margin that would be required if all I put in a brokerage account was the $7,500? Does it depend on the broker?
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Margin on short SP futures call spreads
- Thread starter dcwriter2
- Start date
Odd.I this the case with all brokers? I alsotalso PM was $250k? Pretty sure I traded options on ES in a small account at IB once, too, without PM, and in an IRA no less.
I cannot answer that.
Looks like you are trying to trade options on futures. I cannot speak for other brokers, but with TD Ameritrade, you will need Portfolio Margin ($125k) to trade such an instrument. Well, that was the case back in 2016, when I wanted to trade an option on future.
Don’t options on futures require a futures account, which is different from and unrelated to a PM account?
Don’t options on futures require a futures account, which is different from and unrelated to a PM account?
Since an option on future is a future, I would have to say yes. I mentioned PM, because TDA considers them has "high risk." I tried trading them four years ago on 100K account, and was denied.
For some reason, I thought they used SPAN instead of PM.
You should pick up the phone, or submit a support ticket, to your broker to get better informed answers to your questions.
Since an option on future is a future, I would have to say yes. I mentioned PM, because TDA considers them has "high risk." I tried trading them four years ago on 100K account, and was denied.
PM has nothing to do with high risk. It’s a different way of calculating risk that actually gives you more rope.
For some reason, I thought they used SPAN instead of PM.
Yes. Futures use SPAN.
BAT31 doesn’t know what he’s talking about and then being arrogant about his ignorance.
.... and he called me a troll in another thread.