More Mileage From Margin by John Summa
ARTICLE SYNOPSIS ...V. 22:3 (48-50): More Mileage From Margin by John Summa
Looking for ways to get more from your margin? Try this.
As an option writer, which by definition produces limited profit scenarios, I am particularly concerned about finding ways to lower my cost of trading. One way is to get maximum mileage out of my margin capital. So I decided to undertake a comparative study of margin
requirements for option trades in two popular markets used by option writers: the CBOE's Options Exchange (OEX) and the Chicago Mercantile Exchange's Standard & Poor's stock index futures. If you are serious about opt...