I am a bit confused as when you say sell the TER May 18th 32
puts and buy the 31 calls how is that a spread? You would have to
sell the May 18th 32 puts naked which requires a lot of margin. For
TDameritrade to sell 10 TER MAy 18th puts at .70 on a naked basis
would take in $700 and require margin of $5,900.
no it's not naked - that's why you sell the 32 puts for the
premium and then buy the 31 puts, it's a bull spread., anyway the
spread is more narrow than it was before, not as ideal,
I corrected the typo on that post I had originally wrote buy the
31 call, it's the 31 put not call
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Confused about Options Example
options example
Posted by victorh on 1st of May 2018 at 12:22 pm
I am a bit confused as when you say sell the TER May 18th 32 puts and buy the 31 calls how is that a spread? You would have to sell the May 18th 32 puts naked which requires a lot of margin. For TDameritrade to sell 10 TER MAy 18th puts at .70 on a naked basis would take in $700 and require margin of $5,900.
no it's not naked -
Posted by matt on 1st of May 2018 at 02:16 pm
no it's not naked - that's why you sell the 32 puts for the premium and then buy the 31 puts, it's a bull spread., anyway the spread is more narrow than it was before, not as ideal,
I corrected the typo on that post I had originally wrote buy the 31 call, it's the 31 put not call