VXX call short margin requirements

[darwin666]

does anyone know whats up with margin requirements to short VXX calls.

its miniscule.... meaning. if i want to short september 60 strike calls.
1 short call costs me like 100-200 in margin....
there must be some catch? eh...?..
( and yes, i do know the dangers of naked call shorting and volatility on VXX, and that margin requirements are real time. dynamic. .they change by the minute)

 

[Maverick74]

Dude, posting 200 in margin to make 15 bucks? Was this a serious question?

 

[1245]

You are not providing much information. What Firm are you at? Is it Reg-T or PM? The requirement from the OCC is only $38/contract for a PM account, from the minimum requirement of $37.50 (They round up). See attached.That strike is very far OTM.

1245

 

[1245]

For Reg- it looks like: (I'm not sure if this is accurate for this option.)

Position
Short 1 Sep 60 call(s) at $0.15
Underlying stock at $29.00
Minimum applies in this case

Initial Margin
Margin requirement: $305.00
Proceeds from sale of short call(s): $15.00
Margin call (SMA debit): $290.00

 

[darwin666]

thanks for the replies.. yes it is.. a PM account.. ..
that explains it..

 

[Maverick74]

I'm confused why the OP thought there was a catch as in that's some kind of a good deal

 

[convexx]

http://www.cookwithcampbells.ca/en-ca/RecipeThemes/mealsunder15.aspx