Hello!
I have a question about what margin that actually is required for below VXX position.
I calculated it here and got this. I wonder if below is really true?
http://www.cboe.com/trading-tools/calculators/margin-calculator
Position:
Long 1 Mar 17.5 call(s) at $1.74
Short 100 VXX shares at $17.81
Initial Margin
Margin requirement for long call(s): $174.00
Margin requirement on short sale of stock: $2,671.50
Proceeds from short sale of stock: $1,781.00
Margin call (SMA debit): $1,064.50
Question 2:
When they say margin call (SMA debit): $1,064.50
What does that exactly mean. Does that mean as long as CASH + positions is worth MORE than $1,064.50, I will not have a margin call or do they only mean FREE cash?
Thank you
I have a question about what margin that actually is required for below VXX position.
I calculated it here and got this. I wonder if below is really true?
http://www.cboe.com/trading-tools/calculators/margin-calculator
Position:
Long 1 Mar 17.5 call(s) at $1.74
Short 100 VXX shares at $17.81
Initial Margin
Margin requirement for long call(s): $174.00
Margin requirement on short sale of stock: $2,671.50
Proceeds from short sale of stock: $1,781.00
Margin call (SMA debit): $1,064.50
Question 2:
When they say margin call (SMA debit): $1,064.50
What does that exactly mean. Does that mean as long as CASH + positions is worth MORE than $1,064.50, I will not have a margin call or do they only mean FREE cash?
Thank you
