Project X

[marsman]

I'm really perplexed how OP could earn 60% in a week selling weekly options. There isn't enough premium and margin on reg-t would prevent you from getting size. Further those options haven't expired yet, so those earnings could largely come from theta - meaning OP is running like 3x that in short premium.

Sorry to say this to such an experienced senior trader like you, but your posting above just proves that you don't know how RegT margin trading nowadays works, ie. in your times it seems to have been different than how it works nowadays.
IB uses realtime/dynamic margin calculations. Don't ask me the details, I just make use of what is possible at IB; nothing more, nothing less.

 

[gkishot]

Sorry to say this to such an experienced senior trader like you, but your posting above just proves that you don't know how RegT margin trading nowadays works, ie. in your times it seems to have been different than how it works nowadays. IB uses dynamic margin calculations. Don't ask me the details, I just make use of what is possible at IB; nothing more, nothing less.

Does that mean that they can ask you at any time to liquidate all positions ASAP?

 

[marsman]

Does that mean that they can ask you at any time to liquidate all positions ASAP?

Why should they do that? Sure, if I get a margin call then they will close some positions of mine until the margin requirement again is met. But that's normal procedure.

 

[gkishot]

Why should they do that? Sure, if I get a margin call then they will close some positions of mine until the margin requirement again is met. But that's normal.

Well, what does dynamic margin exactly mean? Doesn't that mean that at some point they might think your positions carry too much risk?

 

[marsman]

Well, what does dynamic margin exactly mean? Doesn't that mean that at some point they might think your positions carry too much risk?

It simply means that the margin requirement is re-calculated and adjusted every minute or so for all open short positions. It is not a static value.
Ie. the margin requirement can rise, and can also fall due to changes in IV, underlying spot, current premium, time-decay etc. etc.

 

[gkishot]

It simply means, that the margin requirement is re-calculated and adjusted every minute or so for all open short positions. It is not a static value.

That's exactly what I mean. Margin requirements now might significantly differ from the ones 1 minute (or 1 day) from now.

 

[marsman]

That's exactly what I mean. Margin requirements now might significantly differ from the ones 1 minute (or 1 day) from now.

Right.

 

[marsman]

Current status:

 

[marsman]

Did I tell that I'm trading weeklys, but that my timeframe is 1 to 3 weeks?...
Yes, I did, even many times!...

Anybody still confused?

 

[newwurldmn]

I thought I was on ignore

To everyone else here, think shoeshine boys and stock tips.