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Options Strategies Discussion and Support Forum


Welcome to Etradehome Forum on Options Strategies. Feel free to post a message.
Any commentary or illustration generated in this forum is provided for educational purposes only. You must decide your own suitability to buy or sell options. This is neither a solicitation nor an offer to buy/sell stocks or options. Commission was not taken into calculation. Note: You have to know the risk of options writing before execution, especially naked call/put writing, bull/put spread, covered call writing, short straddle, short strangle, short guts, short/long iron butterfly, short/long wingspreads and short/long box.  Forum participants have to exercise responsibility and sincerity in message posting.

 

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Options Strategies Discussion and Support Forum
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Author
Comment
k
ky
Apr 6, 2008 - 12:20AM
short guts on E-minis S&P500

hi,
has anyone tried to do short guts or short strangle on E-mini SP500? is the margin requirement on this very high and need a lot of capital using these 2 strategies?

rgds
ky

j
JK
Apr 9, 2008 - 9:27AM
Re: short guts on E-minis S&P500

KY, I was on holidays for a few days. No one answered you er?

I do not know the margin requirement because my account was not set up for e-mini trades.

Anyone knows better?

h
Hanz
Apr 9, 2008 - 9:42AM
Re: short guts on E-minis S&P500

Hi JK and KY,

I missed your message, my eyes were not sharp lately.

For ITM call, say 50 points ITM, the margin requirement is about $8000. For one short guts, the total margin requirement is be near $15000.

For 50 points OTM, it is about $5000 per leg.

I did not find any liquidity in the E-mini options in IB. I am not sure about others. Anyone has used different brokers on E-mini?

e
Eugene Tan
Apr 10, 2008 - 6:43PM
Re: short guts on E-minis S&P500

Hi,

Yup, imagine a stock with a price of $1,366 (Emini SP500 futures price last night) and you know why the margin is so high. The options are liquid but only closer and during US stock market hours. Other times (this is 24-hr market! ) its not active.

Eugene Tan

k
ky
Apr 11, 2008 - 6:23AM
Re: short guts on E-minis S&P500

hi guys,
thank you so much for your reply. so i supposed you all are also not doing E-minis SP500 right? .:)

i am doing on spy, qqqq, and iwm,. what about you all? care to share which are the ones worth putting the short guts on?

thanx
ky

e
Eugene Tan
Apr 12, 2008 - 6:30AM
Re: short guts on E-minis S&P500

Doing short guts on ETFs' is a conservative and wise move. ETFs' dont gap like stocks do and not so news sensitive so there is time to do adjustments of the short guts.

Eugene Tan

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