NDX Options

[traderjo]

I'm interested in trading the index options. Now, currently I trade index futures but I am considering the NDX options and SPX options in the future. I am familiar with Reg-T for stocks and SPAN for futures but know nothing about index options margining. Just a couple of questions. I like the fact that these are cash settled European style.

What is the margin for the basic

NDX ATM Call
NDX ITM Call (few strikes)

SPX ATM Straddle

Simple spread examples would be cool.

What's your opinion on trading these intraday? Mostly just long. Can small guys trade these? How much of an account is required to do this stuff? I got 100k.

Also looking for war stories, or anything else you got pertaining to these index options vs other instruments. Thanks.

ATM/ ITM whatever
- if you are a buyer of an option you have to pay full price.. where does the question of Margin come in to it?
- If you area seller of an option ( naked) then yes then margin comes in to picture
- If you are a buyer of a Option spread then again you have to pay full price of the spread
- If you are a seller of a Option spread then your max loss is fixed and you need cash = max loss
- How much for a long option.. based on expiry time and ATM/ITM just check few live prices on your platform