Post Expiration Margin for Index options as well?

[yosuji198]

Hi Community,

I received this error while trying to iron condor AMZN
"YOUR ORDER IS NOT ACCEPTED. PROJECTED POST EXPIRATION MARGIN DEFICIT IS..."

I'm not sure how they calculate post expiration margin, but if I traded only index options like SPY do you think would I be better off? Since they settle in cash?

Thanks

 

[TommyR]

not smart at all would be my only comment

 

[FSU]

Spy is not settled in cash. SPX is.

 

[Option_Attack]

$54,000 deficit? You trying to put on a condor that is expiring? IB wants you to close out ITM shorts before about 2:00 pm on exp day.

 

[guru]

I've seen such message a few times. The margin deficit may not be related to this order, but to your other existing positions. IB calculates projected future margin deficit for all positions. So you may have margin deficit even if you don't place new orders. But this changes day-to-day.

 

[yosuji198]

Yes I meant SPX or NDX. This margin deficit notification stopped me from placing orders on BKNG expiring next week, but it allowed me to place any order I wanted on BKNG expiring that same day (Friday), and it allowed me to place any order I wanted on SPX, AMZN, or any other stock - it only stopped me from placing a new order on BKNG for expiry next week, which I thought odd. I had plenty of Excess Liquidity left too over $80K worth.

Either way, I couldn't adjust my short for next week and now that trade is ruined.

 

[IBRex&me user]

$54,000 deficit? You trying to put on a condor that is expiring? IB wants you to close out ITM shorts before about 2:00 pm on exp day.

must pay attn to 'post expiration margin deficit' esp if highlighted in red in account window as in last two hours (2-4pm ET) of expiration day you will be liquidated. the shorts responsible for this 'post expiration margin deficit' might expire the next day. your margin cushion can still be way above 10%, as the longs that expire today still make current margin requirements acceptable, but once they expire,the margin, the 'post expiration margin deficit', will lead to liquidation if not reduced, can try to buy a long for eg.