Hi, do not want to share the trade and today it is performing spectacularly. Confirmed it with a real trade at Fid so far this morn, over 75% reduction in margin used at Fid with same P/L profile as what they used the old way yesterday. I am doing PM both sides only as no need to use an AM.
SPX weekly options Etrade wants massive increase in margin exp week?
- Thread starter darp
- Start date
Well did same setup at Etrade and instead of $15,000 it was 7,500 margin so their final week super jacking up of margin is still there. Same trade also today at Fid was $1360 margin or less than 1/5th of ET same trade same day, but last week Fid took twice the margin of ET so the principals in that article work both places, but gotta straighten Etarde out on this final week super jacking up of margin. That is the next step, calling them now have the facts. At least know the score now. ET was better at margin than Fid , until final week.
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Well, did same general trade but with next week exp at Etrade and sure enough the margin used was less after execution, but gotta laugh about how much less. The cash buying power did not go down at all, it went up $400!!!
Etrade just called me and the ET broker 100% agrees that ET charging over $15,000 margin for the exact same trade at Fid charges $1360 margin makes no sense and is going to try and straighten out their risk dept with the data gave him. He said the risk dept admitted that on calendar spreads they jack up margin the final week, which makes no sense as the only risk on a calendar spread is the amount you pay.
if you're unwilling to share your super secret trade the only answer is "figure it out with your broker."
Got to say, you gave me a great plot for a movie or documentary. Steal about 100 accounts from a broker...Only margin accounts (with the client's phone numbers). Record FaceTime with them as you tell them their margin account now requires 10 times the amount needed compared to the day before. Wear an ugly tie...Act like you are an expert...Mispronounce their name. Watch the responses...Classic!!
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