Margin Question for Shorting options

[John9999]

This would be done with my Interactive Brokers account...
I cannot figure out how much $ I tie up to short an option.

so lets say I short XYZ at $.20... so that is $20 USD if I was going long. This will not be a Debit/Credit spread.

How much $ do I tie up to Short this Naked? with no offsetting option or the underlying security??

 

[OptionsOptionsOptions]

https://www.interactivebrokers.ca/en/index.php?f=marginCA&p=opt



Naked Call

100%* option market value + maximum (((30%* underlying market value) - out of the money amount), 10%* underlying market value, $250* number of contracts). Short sale proceeds are applied to cash. 30% above is 15% for broad based index options.

Naked Put

100%* option market value + maximum (((30%* (underlying market value) - out of the money amount), 10%* strike price, $250* number of contracts). Short sale proceeds are applied to cash. 30% above is 15% for broad based index options.

 

[julianantonio]

HI, I manage some accounts for a small CTA. To be specific SPX options, as the some of the margin accounts of the clients do not meet the PDT min account size requirements I'm trading spreads, where IB margin is max loss independent of credit (take the SPX on CBOE that's $500)

ANy idea how to increase available margin volume by sending through box spreads?

 

[FSU]

HI, I manage some accounts for a small CTA. To be specific SPX options, as the some of the margin accounts of the clients do not meet the PDT min account size requirements I'm trading spreads, where IB margin is max loss independent of credit (take the SPX on CBOE that's $500)

ANy idea how to increase available margin volume by sending through box spreads?

Selling a box in the SPX will not increase your available margin. It will increase your credit balance for interest rate purposes.