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89%
- Aug 21, 2019
- 387
- 345
I tried ringing them and just got an endless ring..
how is the margin calculated?
say, for example, if I have USD 100k in my account, how much can I borrow on margin to sell puts?
also, if all my puts expired out of the money, does that mean, I never borrowed money (and thus do not have to pay interest) as my profits cover the amount borrowed?
sometimes the P&L is negative during the trade, as the option price becomes more expensive than I sold it for. does the temporary (paper) loss account for money owed to the broker if I sold the contracts on margin, and do I risk getting margin called in this scenario? or is the amount owed not calculated until the trade is over, e.g. weekly if I'm selling weekly puts?
thanks to anyone who can shed light!!
how is the margin calculated?
say, for example, if I have USD 100k in my account, how much can I borrow on margin to sell puts?
also, if all my puts expired out of the money, does that mean, I never borrowed money (and thus do not have to pay interest) as my profits cover the amount borrowed?
sometimes the P&L is negative during the trade, as the option price becomes more expensive than I sold it for. does the temporary (paper) loss account for money owed to the broker if I sold the contracts on margin, and do I risk getting margin called in this scenario? or is the amount owed not calculated until the trade is over, e.g. weekly if I'm selling weekly puts?
thanks to anyone who can shed light!!
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