cuegis Posted June 9, 2017 Posted June 9, 2017 (edited) Hi, I'm pretty sure I have this correct, but I just wanted to double check. I want to know what the margin would be on an Iron butterfly under these conditions. Stock xyz = $150 I am buying a $145 put/ selling a $150 straddle/ buying a $155 call. I am receiving $4.00 credit for this. I am assuming that the $400 gets added to my cash equity, and then I am being charged a margin that is the distance between the strikes, which is the maximum risk of $5. So, the trade requires $100 to do, because the $400 I received will be put towards the $500 margin req. Is this correct? I have been doing quite a few $5 Iron Butterflies, for greater than a $4 credit, and, although I have not looked into this very deeply, it's seems like my margins are out of whack. Edited June 9, 2017 by cuegis Quote
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