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When I put a position on I have 2 times the Initial Margin required for cash excess. If the increase in margin plus the loss on the increased margin uses up this cash excess then it is time to exit.
For example, if I sell an option for $100 and the margin required is $500, I will have $1000 excess.
If the margin increases to $900 and the premium is higher than $200 then the cash excess is gone and it is time to exit.
Can you help answer these questions from other members on NexusFi?
New to this thread, and saw Ron's comment about a page back that he wouldn't trade on a Delta of .04. Doesn't that mean that the strike price currently has a 4% chance of being ITM at expiration? ATM delta of 50% is a 50-50 shot, so I was thinking that 4 Deltas is way out there (maybe even 2 SDs?)....anyway, curious what you guys think about vertical put credit spreads 4-5 strikes apart, with the short side at .04 Delta? In the /NG example, currently the $3.15 strike (4 deltas) will provide a credit of $640 after comm. with the long side at $2.90....with 68 DTE. And the margin in TOS is $1273....2/1 risk ratio. Comments on the sensibility of a trade like this?
Sorry, should have mentioned that was for 10 contracts....but the numbers come out of the analyze tab on TOS. What level of Delta do you typically target, if .04 is too high? At $2.80 for the short side, and $2.50 for the long side, Delta is .01, but the income on 10 contracts is only $40. Doesn't seem worth it to me.
Thank you. Thank you. Thank you. Got it to work. Thanks for the clear instructions.
Is there anyway to use wildcard characters for the date of the array file? Or do I have to change the SpanScript.txt file every day before I run it?
Now I am going to be greedy. I take the summary file and do the following steps to it.
delete column A
On column B I use Convert Text to Columns Wizard.
Save the resulting Excel file as a 97-2003 Workbook file.
Is there a key stroke saver that I could invoke to perform this task with one click?
If you have an active account at Interactive Brokers (IB) they will give you full access to a sim account with real times quotes. It's the best sim platform that I have seen, it even includes real bid-ask quotes.