As per the discussion earlier it can be quite expensive to sell
naked SPX calls but there is a much cheaper way to accomplish the
same thing. For example selling a naked 1215 strike put expiring
tomorrow April 4 for $13 will require $52,000 in margin for each
option sold naked.
However the margin required for selling naked options on the ES
futures are much smaller for some reason. Using the same example
above selling a naked put with a strike price of 1215 on the ES
futures only requires $6,200 margin. The added advantage of dealing
with ES options is they trade all night so you can get out anytime
versus not being able to trade until the normal market open of 9:30
EST.
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Selling naked options
Posted by victorh on 3rd of Apr 2018 at 09:41 pm
As per the discussion earlier it can be quite expensive to sell naked SPX calls but there is a much cheaper way to accomplish the same thing. For example selling a naked 1215 strike put expiring tomorrow April 4 for $13 will require $52,000 in margin for each option sold naked.
However the margin required for selling naked options on the ES futures are much smaller for some reason. Using the same example above selling a naked put with a strike price of 1215 on the ES futures only requires $6,200 margin. The added advantage of dealing with ES options is they trade all night so you can get out anytime versus not being able to trade until the normal market open of 9:30 EST.