Short Puts - here's what I get using 4 short puts, same strike, from the spreadsheet I have setup:
Also, sell at the bid, buy at the ask:
Bid/ask for the Jan 13: $4.00/$4.25
Stock Price: $9.25
Maintenance Margin: $2440 (=$4.25 + $9.25 * 20%)
Less proceeds: 1600
Margin req'd: $840
If stock goes to $8.00:
Maintenance Margin: $2840 ($5.50 + $8 * 20%)
(I assumed the put cover cost went to $5.50 - but on downdrafts it's more likely to be more expensive as volatility and delta goes up - the more in the money, the higher the delta. Pricing can be a real factor, Especially if the options are thinly traded)
If stock goes to $13: (assumed $0.50 put cover cost, est only)
Maintenance Margin: $1240
If stock goes to $7.00 and put cover cost $6.50:
Maintenance Margin: $3160
CBOE short maintenance margin (this is my old copy, so probably worth double checking!), clear as mud LOL:
For each short option,100% of option market value plus 20% of underlying security /index value less out-of-the-money amount, if any, to a minimum for calls of option market value plus 10% of the underlying security /index value, and a minimum for puts of option market value plus 10% of the put’s exercise price.
So I don't know if that is any help?
And I have to step away here, so hopefully it is... |
