Portfolio Margin at ThinkorSwim

[opt789]

Quote from RichardRimes:

I almost e-mailed to request for PM .....BUT....I'm a little unclear about the minimum $37.5 contract charge. Right now I'm at .95 per contract minimum 20 per side/leg so that would almost double my commission charges per trade. I'm not really comfortable trading over 20 contracts at this time, so would having PM be enough to offset the extra charge? I wonder if they will give our paper accounts PM

There are no extra charges for PM, the 37.50 is a minimum Haircut requirement if you have an essentially risk free position like a conversion.

 

[weewilly]

Quote from RichardRimes:

I almost e-mailed to request for PM .....BUT....I'm a little unclear about the minimum $37.5 contract charge. Right now I'm at .95 per contract minimum 20 per side/leg so that would almost double my commission charges per trade. I'm not really comfortable trading over 20 contracts at this time, so would having PM be enough to offset the extra charge? I wonder if they will give our paper accounts PM

i think you're confusing the 37.50 contract minimum margin with commissions.

 

[weewilly]

if you look at some portfolio margin examples from CBOE:

http://www.cboe.com/micro/margin/margin_req_examples.pdf

the fourth line, "Protective Put" with 10 sticks of IBM and 100 puts shows that 37.50 contract minimum margin in play.

the margin is $37,500 versus $498,000 under strategy-based margin.

 

[RichardRimes]

Thanks guys I was.....

 

[RichardRimes]

Quote from weewilly:

if you look at some portfolio margin examples from CBOE:

http://www.cboe.com/micro/margin/margin_req_examples.pdf

the fourth line, "Protective Put" with 10 sticks of IBM and 100 puts shows that 37.50 contract minimum margin in play.

the margin is $37,500 versus $498,000 under strategy-based margin.

wow...that does make you salivate...doesn't it!

 

[weewilly]

actually, i think that's a good example of the vast difference between the two margin styles, but not a real example of the 37.50 per contract minimum.

but you get the gist of it.

 

[RichardRimes]

yep...what I really like about it is the ability to do short calendars and volatility plays...ie buying the strangle/straddle in low vols and selling the strangle/straddle in high vol's ...another way to leg into IC's...

 

[daytrader1540]

I completed the test..Can anybody on hhere check it out for me and see if I answered correctly

 

[opt789]

Sorry you didn't pass, including the one you didn't answer you have 5 wrong.

 

[daytrader1540]

Quote from opt789:

Wow, no one be me? Either you guys aren't using TOS, which seems a little surprising since they are one of the best retail firms for options, or you don't have 100k+. Interesting either way.

If any of you are considering it let me know your questions, I may be able to answer them.