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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: jjs_ynot who wrote (1324)4/3/2000 7:37:00 PM
From: OX  Read Replies (1) of 2317
 
I'm sure Ken can answer this much more succinctly than I can.

First, there are several equivalent ways to construct butterflys. after deciding which combo you have, I would say split up the legs into the respective spreads, and compute the margins that way.
keeping in mind if you have a short straddle, in general, margin is calculated using the prems collected + 20% (or 15% for indices) of the underlying.

other than generalities, I still have this mental block on calculating the specifics of margin.
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