S&P 500 Option Margin Requirements

[cnms2]

At optionsXpress:

<img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=1050754>

 

[cnms2]

Disclaimer: I'm only a client

 

[ids]

omcate,
OK, that explains it. We are talking about today and strike 1350.

 

[Arnie Guitar]

Quote from Arnie Guitar:

I know about the common formula for equities;

30% x Underlying - OTM amount + 100% of option premium = Margin Requirement;
for naked options.....

Would it be the same for index options?

So, for discussion's sake;

S&P 500 = 1305
May S&P 500 1350 Call option = 1.25

So,
1350 x .3 = 405
405 - 45 = 360
360 + 1.25 = 361.25

So the margin requirement for being short one naked May 1350 call would be $36,125.

Right?

Thanks everyone for the posts.
Even though my assumption was wrong, I still wanted to correct my math.
It should be 1305 x .3, not 1350 x .3 .
Duh.
1305 x .3 = 391.5 - 45 = 346.5 + 1.25 = 347.75 x 100 = $34,775
I know that is not the margin requirement, but I wanted to correct the math.

 

[OptionsWizard]

From IB site

http://www.interactivebrokers.com/en/trading/marginRequirements/stockIndexOptions.php?ib_entity=llc


100% * option market value + maximum (((20% * underlying market value) - out of the money amount), 10% * underlying market value, $2.50 * multiplier * number of contracts). 20% above is 15% for broad based index options.

 

[dmcw]

Quote from ids:

[
TWS and PC SPAN both show requirements
Initial 15.165
Maintenance 12,132
The number $14,700 given by Global is actually the margin for CBOE SPX. [/B]

For the record, our margin was not for CBOE SPX. The margin was given by our CME SPAN margin calculator.

Happy trading.

 

[ids]

OK. It is just an interesting coincidence. It happens. Is the number 14,700 initial or maintenance margin?

 

[dmcw]

That was the initial margin.

Regards,