Options portfolio margin discount on the new, super-detailed interpretation here!

How to reduce the margin of stock guarantee portfolio (covered call)?

Strategy summary: stock guarantee portfolio consists of positive shares + selling call orders.

Example: hold 100 shares of Ford, sell 1 call, the margin discount amount is approximately US $568 (the following data is for demonstration only, the actual amount is subject to the order page data)

1. The situation without margin discount
If you hold positive shares, you need to charge an initial deposit of 568.48 yuan when you sell call.

2. After the margin offer comes into effect

Is 0 yuan (indicating that the deposit has been waived)

How to reduce the margin of the spread strategy portfolio (Spread)?

Strategy summary: the spread strategy consists of an option long position and an option short position, and the options in the portfolio have the same size and the same call and put direction.

Full remission of deposit，以Ford stock的Vertical spread strategyAs an example

It takes a deposit of $34 to buy a put that expires on March 18 and has an exercise price of $16.

Sell a put that expires on March 18 and the exercise price is $15, with a deposit of $378.07.

In the case of no margin reduction, the total margin required after the completion of the above two orders: $343,378.07$ 412.07.

After the margin deduction is launched, the margin required to buy put, which expires on March 18 and has an exercise price of $16, is still $43; at this time, another put with an exercise price of $15 expires on March 18 is sold with a margin of $0.

The margin of the second single call order is fully waived, and the deduction amount is US $373.04.

Partial remission of margin，以XIAOMI stock的Vertical spread strategyAs an example:

If you sell a separate put that expires on March 30 and the exercise price is HK $15, the initial margin required is HK $1313.86.

If you buy a put that expires on March 30th and the exercise price is HK $14, the margin required at this point is HK $180.

In the case of no margin reduction, a total of margin is required after the above two orders are completed: 1313.86 million 180 =1493.86Hong Kong dollars.

Now, the margin deduction is online. The purchase price of put, which expires on March 30th, is HK $14, and the margin is still HK $180,000.

The sale of put, which expires on March 30th and has an exercise price of HK $15, requires a margin of HK $1000.

Deduction amount = 1313.86-100000313.86 Hong Kong dollars

How to reduce the margin of cross-style strategy (Straddle)?

Strategy summary: it consists of a call option and a put option with the same option size and maturity.

Take the straddle strategy of Ford stock option as an example

If you sell a separate put that expires on March 18 and the exercise price is $10, the initial margin required is $231.00.

If you sell a separate call that expires on March 18 and the exercise price is $24, the initial margin required is $414.75.

If there is no margin reduction, the above two orders require a total deposit of $231.00, $414.75, $645.75.

After the margin deduction is launched, the required margin is US $414.75.

Deduction amount = $645.75-$414.75,231

Details are as follows:

The margin required to sell call is $414.75; the margin for selling put is $0.

Margin reduction: margin reduction policy for cross-strategy: reduction of an order with a smaller margin.The reduction is as high as 50%.。

I wonder if this ultra-detailed interpretation has helped all of you? Try to configure an option portfolio.

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