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I think I corrected my table. For those of you who do not know, the OEX calculator does spread margins incorrectly. There is a work around, and here is an example:
CLZ373P/135P @turch recommendation, a VERY good one!):
Per OEX calculator: Margin for 1 spread = $978 (wrong)
Per OEX calculator: Margin for 2 spreads = $1098 (wrong)
But, if you take the difference = $1098 - $978 = 120 you get the correct margin for 1 spread.
So, based on that, I get:
So, at @turch 's recommendation gives the best ROI (after costs, assuming you want to keep delta below .04), and is the furthest out of money. The trick will be getting fills, as the 73P is currently 0.00/0.04 and the 135C is 0.01/0.02. You probably won't get .02 for each leg.
Thanks to @MGBRoadster for questioning my (wrong) calculation.
edit: the other caveat here is that the prices may be current, but the margins are as of last night. Given today's drop, that will change the margin requirements.
Can you help answer these questions from other members on NexusFi?
I think Ron has said that if you use the settlement price with last night's margin then that should produce a more accurate ROI. The settlement prices for those three spreads would be:
85P/120C 0.17
90P/115C 0.40
73P/135C 0.04
Looks like OX attempted to fix the Trade Calc. The P&L chart now has a line but the P&L prices are wrong. I'm looking at a CL chart and instead of $20 it has $0.20.
You might sell Dec 75 puts and 130 calls for .02 each. Tomorrow's margin for that spread at OX is 140.40 (SPAN 117). That's a 5.6% monthly ROI at OX. 6.8% at SPAN minimum margin. $3.50 commission rate.
Hey Ron,
Have you been selling ES like Karen? If so do you think it was possible to turn $700K into $41 mill. in around 2 years.
I still am wondering how she did it.
I was selling ES until a month ago. Quit selling ES puts because of impending gov shutdown and debt ceiling stuff. Good thing I did. They haven't moved for a month.
So we don't know her ROR%. If she didn't have any deposits to go from 700k to 41 million profit in 3 years is about 300% per year. Doubtful for just selling options.
But they did say her balance was 80 million. So 80 mil minus 41 mil minus 700k is 38.3 mil in deposits.
I doubt she got the 38.3 mil in deposits all at once but for now let's say she did. So she took 38.3 mil plus 700k which totals 39 mil and made 41 mil profit in 3 years.
So that is 27% per year. Now that is doable selling options.
We need to know when and how much the deposits were made into the account to get the true ROR.