Margin treatment for sold options with diff time expiration

Bonta
2023-07-13

Would like to check with tiger with respect to treatment of sold option positions with diff time expiration.

I have currently 200 shares of alibaba.

These 200 shares are currently covered by

my covered call positions.

However, I have 2 sold put positions which are currently naked.

The remaining 2 sold call options are not able to form a combo.

I believe the issue could be due not recognising Options at diff expiration cycle.

Would tiger be able to look into margin requirements for this type of situation? 

Although the protection will be lesser than pure strangles with same expiration cycle, there is still protection provided by the option in the shorter expiration.

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Comments

  • CaptainTiger
    2023-07-13
    CaptainTiger

    @Bonta Hi, because the expiration dates of the two options contracts you have here are not the same, they cannot be recognized as a strangle combo.

    Regarding the specific calculation of margin for option combinations, you can refer to this article “The Margin for Two-Leg Options Has Been Reduced” on @OptionsTutor : https://ttm.financial/post/9983196679. Thank you!

  • TigerObserver
    2023-07-13
    TigerObserver

    We have submitted your question to our technical team and kindly ask for your patience while waiting for their response.


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