Options on E-Mini S&P Futures

OneHipCat · Apr 23, 2006

To buy a E-Mini S&P500 future you only need around $4000 to meet the margin requirement. Since I'm totally new to options trading, what is the theoretical minimum required to buy a Call option on the E-Mini S&P500 futures?

Thanks!

riskarb · Apr 23, 2006

The req. is $50[index multiplier] x premium. An 8.50 call = $425. No variation margin, simply 100% of premium.

El OchoCinco · Apr 23, 2006

Wow..... risk... that was clear and concise and not full of Greek speak! LOL..

Randek · Apr 24, 2006

Quote from riskarb:

The req. is $50[index multiplier] x premium. An 8.50 call = $425. No variation margin, simply 100% of premium.

That is wrong.

It's not how SPAN margin operates.

You're confused between typical equity-options margining and index futures options margining. Not the same.

El OchoCinco · Apr 24, 2006

Uh..... so are you saying that in a retail account you can buy options on margin?

Are you saying SPAN margin covers purchasing futures options in a retail account?

Are you implying that equity options can be bought on margin as well??

Quote from Randek:

That is wrong.

It's not how SPAN margin operates.

You're confused between typical equity-options margining and index futures options margining. Not the same.

riskarb · Apr 24, 2006

Quote from Randek:

That is wrong.

It's not how SPAN margin operates.

You're confused between typical equity-options margining and index futures options margining. Not the same.

Unless you're a member of a JBO you'll need to put-up 100% of the premium when buying vol.

The OP clearly stated "buying a call", no mention of selling vol. You're really a value-add, Randek. Try not to think to hard, you may sprain something.

Randek · Apr 24, 2006

Quote from riskarb:

Unless you're a member of a JBO you'll need to put-up 100% of the premium when buying vol.

The OP clearly stated "buying a call", no mention of selling vol. You're really a value-add, Randek. Try not to think to hard, you may sprain something.

Just pointing out to the misinformation you've posted.

No need to get so sensitive. You might pop another vein vessel.

El OchoCinco · Apr 24, 2006

And we were pointing out your misinformation as well

LOL

riskarb · Apr 24, 2006

Quote from Randek:

Just pointing out to the misinformation you've posted.

No need to get so sensitive. You might pop another vein vessel.

What misinformation? Please enlighten us to your take on the requirement for buying a call. We're waiting.

WTF is a "vein vessel"?

MTE · Apr 24, 2006

This thread is great fun!

By the way, "vein vessel" is the single most important vessel in the human body as it carries vein. Unfortunately, it is very unstable and can pop at the first sign of a disagreement.