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Trading: short fut. opt., fut. spreads, div. stocks
Posts: 57 since Feb 2012
Thanks Given: 3
Thanks Received: 27
thanks Barrington,
can anybody tell me the IM & MM for the put 90 (CL h)?
i wonder what happens (on both IB & OX if eg. the fut goes down $10) (so my put 80 get the (im&mm) values of the put 90, ignoring time decay)
for IB,
for the put 90, IM=4233, MM=3380
So IM would go from $1902 -> $4233 and MM from $1522 -> $3380 (premium from $90 to $640)
We will use this thread to discuss working with the CME PC-SPAN program.
It is a discussion about SPAN margin and you'll find in the later parts of this thread an excel spreadsheet that you can download to calculate your own SPAN margins. Everything you need to know about calculating SPAN margin is in this thread. It just takes time to go through it.
As you're aware, IB and a a lot of other brokers require slightly more to a LOT more (in the case of IB) in margin, but it is nice to know what the exchange minimum is. There are good brokers out there who charge SPAN minimum. DeCarley is one example.
Trading: short fut. opt., fut. spreads, div. stocks
Posts: 57 since Feb 2012
Thanks Given: 3
Thanks Received: 27
thanks Ron.
ok, its obvious that from a ROI point of view OX is far better.
also i read (still catching up, now at page 50) that you can talk down those transaction costs.
But on excess money point...
At IB the IM goes from 1902 to 4233 (=2,2x) (if the fut drops $10, put 80 vs put 90)
At OX the IM goes from 208 to 1068 (=5,1x)
i guess it depends if you would act before the CL drops $10 but it would mean that if you keep 2 times excess at IB you need (just below) 5x at OX.
so relatively OX margin rises faster than on IB
If you diverse enough that wouldn't be a problem, and also depends on how often a position goes against you and how soon you like to react...
so i guess its better to start with IB and by the time you reach the master level its time to switch
Anybody have a trade idea on coffee?, if we believe the seasonals, it seems we have reached a bottom but puts are not worth selling (at least the ones i found).
Both sesonal & current bottoms out around first half of nov.
if you look at H, K N, U & Z contracts they all go higher...
Just no idea how to make a nice trade (apart from buying the fut or buy a call which i refuse
SMCJB, why do so many analysts and media want to compare a highly variable number like last year's weekly withdrawal with this year's? Statistically it is not significant data. I fail to see anything that can be gained from looking at that comparison. Obviously the weather is not the same weekly one year to the next.
It is like comparing what a baseball hitter did the first week of June with the prior year. Nothing can be gained from it.
I can see comparing inventory at the start and end of winter with prior years. That is valuable. Or withdrawals so far this winter. But weekly numbers? Nope.
Even the 5 year average is being highly skewed by the highest in history inventory numbers from 2012 and has lost value as a comparison.
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,057 since Dec 2013
Thanks Given: 4,399
Thanks Received: 10,225
I agree completely.
What's a lot more interesting,, and more important, is comparing the actual withdrawal with the actual weather, imports, exports etc and hence what the 'unexpected' change in storage was. That's actually available out there as well but you have to dig for it a lot more.
Other thing to consider is, while some of these analyst estimates are the result of some sophisticated analysis and models, some of them are also very little more than throwing darts at dartboards.