ivylanthier 1 Report post Posted April 27, 2015 I entered the VIX 16 Put calendar, May/July x 10 in Optionhouse for a total margin requirement of $9000. I simulated the same trade in TOS and got similar option requirement results. This would be closer to 100% of a 10K account. Am I missing something? Share this post Link to post Share on other sites
Kim 8,042 Report post Posted April 27, 2015 We discussed it on the VIX discussion topic. As I mentioned over and over again, this is one of (many) reasons why I believe IB is superior to any other brokers. Share this post Link to post Share on other sites
Yowster 9,849 Report post Posted April 27, 2015 I entered the VIX 16 Put calendar, May/July x 10 in Optionhouse for a total margin requirement of $9000. I simulated the same trade in TOS and got similar option requirement results. This would be closer to 100% of a 10K account. Am I missing something? This is a big difference between IB and other brokers - IB has $150 margin per spread, but some other brokers treat this as a naked option and hence the large margin requirement. To reduce your margin to $400 per spread, you can buy the May 12 strike put against it for 0.05. It should not have a huge impact on the performance of the calendar since its so cheap to buy. 1 Share this post Link to post Share on other sites
Kim 8,042 Report post Posted April 27, 2015 This is a big difference between IB and other brokers - IB has $150 margin per spread, but some other brokers treat this as a naked option and hence the large margin requirement. To reduce your margin to $400 per spread, you can buy the May 12 strike put against it for 0.05. It should not have a huge impact on the performance of the calendar since its so cheap to buy. Great minds think alike - I just starting to type exactly the same recommendation. I would probably go even with 13 put around 0.18 to reduce the margin requirement to $300. Share this post Link to post Share on other sites
ivylanthier 1 Report post Posted April 27, 2015 Thanks for the help. Much appreciated. But i will try to get out at break even to reduce total risk to my account and free up margin for other trading. And look into an IB account. Share this post Link to post Share on other sites
craigsmith 357 Report post Posted April 27, 2015 This is a big difference between IB and other brokers - IB has $150 margin per spread, but some other brokers treat this as a naked option and hence the large margin requirement. To reduce your margin to $400 per spread, you can buy the May 12 strike put against it for 0.05. It should not have a huge impact on the performance of the calendar since its so cheap to buy. Thanks for the information. Share this post Link to post Share on other sites
