Using AccountType as a hedging tool for options spread trading

E

earth_imperator

Research results:

I found out the hard way that there are at least 3 account types for options spread trading:
1) CashAcct with no SpreadTrading (but one can simulate SpreadTrades)
2) CashAcct with SpreadTrading (as offered by TradeStation)
3) MarginAcct with SpreadTrading

Each of them has a different outcome.
Example: a Vertical Bear Put Spread (Debit) using Black-Scholes-Merton:

UnderlyingSpot=100 DTE=30
ShortPut: K=90 IV=25 (Premium=0.2132)
LongPut: K=100 IV=25 (Premium=2.8587)

--> https://optioncreator.com/stlyxtl
MinPL=-2.6455 @Sx=100.00
MaxPL=7.3545 @Sx=90.00

Effective P/L% :

1) CashAcct with no SpreadTrading (but with simulated SpreadTrade):
CostBase=92.6455 MinPL=-2.86% MaxPL=7.94%

2) CashAcct with SpreadTrading:
CostBase=2.6455 MinPL=-100.00% MaxPL=278.00%

3) MarginAcct with SpreadTrading:
CostBase=3.0719 MinPL=-86.12% MaxPL=239.41%

Conclusions: many... :)
 
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