TSLA Options Question

[LaxFan]

30 contracts x 100 shares x $1 per share, cash secured puts would be $3000.

 

[TimMykes]

Capital structure arbs hedging their bonds.

really?

show us the math on 1 million worth of bonds

 

[guru]

Just for the record, in my portfolio-margin account the margin on selling 30 such puts shows as $1200:

I also checked qty 3000 and the req margin shows at $123,800, which matches the above.

 

[taowave]

Im going to check later.I was trading MSFT a while back and putting on OTM verticals and calendars for credits.I was hit with a surprisingly high margin and told there was some minimum charge despite no risk..

Just for the record, in my portfolio-margin account the margin on selling 30 such puts shows as $1200:

View attachment 246637

I also checked qty 3000 and the req margin shows at $123,800, which matches the above.

 

[newwurldmn]

Im going to check later.I was trading MSFT a while back and putting on OTM verticals and calendars for credits.I was hit with a surprisingly high margin and told there was some minimum charge despite no risk..

the min like 25 dollars per contract (transaction allowance)

https://www.theocc.com/Risk-Management/Risk-Based-Haircuts

I bet a prime broker will do you better though if you have access to that.

 

[taowave]

Thanks buddy...that sounds about right..had apx 1000 calendars/verts and was hit with 50k in margin

the min like 25 dollars per contract (transaction allowance)

https://www.theocc.com/Risk-Management/Risk-Based-Haircuts

I bet a prime broker will do you better though if you have access to that.

 

[caroy]

For the TSLA June 18th 2021, $1 Puts, there are many contracts offered at a bid price .01 with the ask at .02.

It seems like a low strike to have such activity/open interest (40,000 open interest)

1. Is there much/any risk selling those to open at that strike? (besides tying up money for so long)

2. Why would there be so many for bid at a $1 with the stock at its current price?

Perhaps it's the Hindendberg report team loading up on long OTM puts for the long term demise of TSLA. Lol.