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Yes, it uses quite the same amount auf Margin as a naked position with the same value, the difference is not that big. But thats not the reason why i am doing it. I like the additional Protection, specially on Markets like Gold and Crude Oil with huge upside Risk. Volatility is hitting not that hard in coparison to a naked Position. Additionaly, i like the big staying power of a Ratio Spread.
In my opinion, probably everything what i can earn with naked position, i can do it with ratio spreads, just better. I love it.
Yes, Ratio Spread include naked positions. Ratio Spread is not for Margin reduction particulary but for additional protection and Stayingpower. First, staying power: you have quite doble staying power in the first weeks, later even more. Second, Deep OTM Options: With properly seted Ratio you can reach deeper Strikes for Selling. So in my opinion, you have no downside, besides not liquid Markets, but these type of Markets are quite tricky for Naked Selling to.
To be understood correctly: I think ratio spreads are an interesting concept. But IAB calculates margin in a way that it is preferable to avoid naked options.
Yes, IB has quite high Margin for selling naked. You have a bit higher Margin for Ratio as for ONE Short Option with the same Value. Currently looking at Gold 1600 April.18 about 300 Dollar with 2,7k Initial-Margin and Ratio Spread with April.18( GC 1xLong 1600 and GC 3xShort 1660) for abut 300 Dollar and 3,3k Initial-Margin. As you see, Short Strike is deeper OTM, Margin is a bit higher but not dramaticaly.
I wanted to post some pictures, but apperently i need at least 5 Posts for that, i have only three. So, i going to mail it to you, you can post it here if you want.
In the next days I am planning to sell ZSH8 (March '18) P860.
According to the longterm seasonals we should have the low beginning of the October.
Also the CoT data indicates that commercials tend to expect higher prices.
The chinese market is closed this week, so I would expect demand picking up again next week.
The chart is not giving a clear trend to me, though the price is historically quite low.
So I will only start with a small position, possibly increasing it in the forthcoming days. Bid is currently
at 2 5/8
Cordier&Grossman expect a rangebound market to the end of the year and will do strangles.
Thus, I am willing to sell calls on spikes as well if there is enough DTE.