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Updated July 28, 2023
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August 12th, 2015, 04:18 PM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
rsm005
That's crazy. That margin number was lifted straight from the platform when the trade was made. I spoke to my broker and she said that there can be discrepancies like that and to check the statement to be 100% sure!!!! I've tried to use dudetooth's calculator but just can't figure it out. I'll spend a bit more time on that and see what comes out of it.
/rsm005/
Which platform are you using? I'm guessing it can't correctly compute IM for the end of the month options.
August 12th, 2015, 04:29 PM
tennessee/USA
Experience: Intermediate
Platform: Quotetracker, TOS
Broker: OX TOS
Trading: ES
Posts: 83 since Aug 2014
Thanks Given: 267
Thanks Received: 8
Ron,
Are you using all the money to sell put or do you leave some extra money in your account since it is traditionally weak season for ES (such as Sell in May, go away...)?
Thanks.
August 12th, 2015, 04:52 PM
vancouver BC/Canada
Experience: Beginner
Platform: Zaner360, OX
Broker: DeCaley
Trading: options
Posts: 264 since Jan 2015
Thanks Given: 13
Thanks Received: 205
ron99
Which platform are you using? I'm guessing it can't correctly compute IM for the end of the month options.
Zaner360.
August 12th, 2015, 04:53 PM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
daydayup8
Ron,
Are you using all the money to sell put or do you leave some extra money in your account since it is traditionally weak season for ES (such as Sell in May, go away...)?
Thanks.
I ignore the seasonalities of ES. Virtually none of them are consistent year to year. My accounts are full with ES puts right now. 2,560 short puts.
ES has been in a narrow 139 point range the whole year. 1988 to 2128.
Since Feb 4th the range has been 2039 to 2128. 89 point range.
August 12th, 2015, 05:02 PM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
rsm005
They just started giving IM on options last year I think. It is not without mistakes yet. Always double check with your statement.
August 12th, 2015, 05:03 PM
tennessee/USA
Experience: Intermediate
Platform: Quotetracker, TOS
Broker: OX TOS
Trading: ES
Posts: 83 since Aug 2014
Thanks Given: 267
Thanks Received: 8
Thank you, I will re-evaluate my positions and put a little more. I have been using only half of the money since June.
Too cautious maybe...
ron99
I ignore the seasonalities of ES. Virtually none of them are consistent year to year. My accounts are full with ES puts right now. 2,560 short puts.
ES has been in a narrow 139 point
range the whole year. 1988 to 2128.
Since Feb 4th the range has been 2039 to 2128. 89 point range.
August 12th, 2015, 05:05 PM
Huntington WV
Experience: Advanced
Platform: TradeStation
Trading: ES, CL
Posts: 483 since Jun 2015
Thanks Given: 877
Thanks Received: 682
First trade on in options today.
Short 1 ES 1680 Put at .50.
Starting super small to get a feel for how margins change along with the market.
Thanks again to @ron99 and others on this thread, wouldn't have started selling options without it.
August 12th, 2015, 05:26 PM
Posts: 3,673 since Jul 2012
Thanks Given: 1,893
Thanks Received: 7,377
TheTradeSlinger
First trade on in options today.
Short 1 ES 1680 Put at .50.
Starting super small to get a feel for how margins change along with the market.
Thanks again to @
ron99 and others on this thread, wouldn't have started selling options without it.
Starting small is the best way!
August 12th, 2015, 05:38 PM
Cleveland, OH
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785
ron99
The ~240% in 31 months is equal to 3.9% per month compounded monthly. That is a 58% per year rate.
The ~228% in 31 months is equal to 3.8% per month compounded monthly. That is a 56% per year rate.
August 12th, 2015, 08:12 PM
Ottawa
Posts: 87 since May 2015
Thanks Given: 67
Thanks Received: 88
rsm005
To add a bit more color the the trade 130 days out vs the one that's approx. 100 days out, here's how the margin has behaved after the most recent pounding by the Chinese currency devaluation.
Contract : OESV5 P1750
Quantity: 80
Premium : $4.55
Days to Expiration at Open: 93
Initial Margin: $978
Days Open: 8
Current IM: $872
Margin as of 8/12/2015: $810
Contract: OEWX5 P1750
Quantity: 40
Premium: $9.75
Days to Expiration at Open: 132
Initial Margin: $978
Days Open: 3
Current IM: $1,315 (ouch)
Margin as of 8/12/2015: $1,251
Notice how little time has actually affected the position further out in time. That $9 premium looked very sexy .... but it would have been a far better use of capital to have a larger position in the OESV5.
/rsm005/
So how far in the red did things go at the worst point?
Last Updated on July 28, 2023