Margin VXX options

B

ben111

Hello,

why is the margin for a short VXX option only ~$35 (portfolio account).
E.g. the margin for SPX short options (and also most other options) is relatively much higher.

What's the reason for the low VXX options margin?

Thanks
 
What do you mean by $35? The OCC shock on VXX is higher than the shock for SPX. House rules for PM margin vary from firm to firm, but in general most have a higher requirement for trading VXX per $ traded.
 
E.g. shorting an atm VXX option expiration 19th june (10 days) has premium of $60 and margin ist only ~$35.
That's confusing me.
Yes, the VXX shock is definitly higher and so I expected a very high margin for the VXX options.
 
what is the exact option and I can use the OCC calculator to tell you what the requirement is without house rules from your broker.
 
Hello,

let's take:
Symbol VXX 150619P00019000
It's VXX option, put, Strike 19, exp. 19th june,
Short one contract is a margin of $33.

Thanks
 
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