cuegis 683 Report post 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 Share this post Link to post Share on other sites
Kim 7,513 Report post Posted June 9, 2017 Seems correct. Share this post Link to post Share on other sites
