Margin on strangles

S

status1

Well-known member
Anyone know how the margin is calculated on strangles ?
It seems to be all over the place on different stocks
It doesn't seem to be correlated to the stock price because I have seen a lower priced stock have a much higher margin
 
Strangle is long put and long call ?
I do not know any additional marginal requirements beside the original cost of the put and the call
 
That's basically the idea although I try to take it off for a profit before that I just started looking into strangles after following some trader on Tastyworks and they seem to have some success I did a couple trades which were done before the earnings so they have high IV so even if it moves by the market maker move amount you will not loose much since the iv gets crushed

It's not a lot of money I am just doing 1 lot trades but if I can do it consistently every day maybe $50-100 that would be a lot better than waiting on SPX for weeks for Theta decay and just when it gets close to expiration the market runs away and you are left with a lot less than predicted and maybe a bunch of adjustments that may or may not work
 
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