ASX Margin requirements for bull and bear put spreads
- Thread starter Santafe
- Start date
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- 21 November 2007
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Depends on what type of account you have. At worst when you buy the spread you will be up for the debit paid and when you sell the spread you will be up for the width of the spread minus net premium received.
Thanks Wayne,
You see this is just another of the crazy questions that the ASX poses in their level 3 options trading quiz.
Where it is likely that I will never have a need for nor have an intention toward trading on margin.
And what's worse, by making me learn it, it only makes it then a greater temptation to use it to my own potential peril.
Thanks ASX.
Any how here is the question posed perhaps some definitive answer would save me reems of paper reading
not sure if that is the correct answer or not.
With these quizes if you dont complete within a certain time you have to start again, and they tend to throw in some different questions in every new quiz taken, while they also mix up the order some.
Comes down to only a matter of time to sus out all the correct answers and then get done in the time limit, and there's your new PHD diploma in options trading.
You see this is just another of the crazy questions that the ASX poses in their level 3 options trading quiz.
Where it is likely that I will never have a need for nor have an intention toward trading on margin.
And what's worse, by making me learn it, it only makes it then a greater temptation to use it to my own potential peril.
Thanks ASX.
Any how here is the question posed perhaps some definitive answer would save me reems of paper reading
not sure if that is the correct answer or not.
With these quizes if you dont complete within a certain time you have to start again, and they tend to throw in some different questions in every new quiz taken, while they also mix up the order some.
Comes down to only a matter of time to sus out all the correct answers and then get done in the time limit, and there's your new PHD diploma in options trading.
Had another look at it, and based on the CBOE Margin rule requirements for options, it would appear all those in the above question are margin requirement applicable.
Just hope same applies here in Australia as it does in the USA.
Why ASX cant issue something as concise and well explained as the CBOE do for options margin requirements with easy understood examples and explanations?
Why ASX?
They expect us to know this stuff but give us little to go on.
CBOE Margin Manual
Just hope same applies here in Australia as it does in the USA.
Why ASX cant issue something as concise and well explained as the CBOE do for options margin requirements with easy understood examples and explanations?
Why ASX?
They expect us to know this stuff but give us little to go on.
CBOE Margin Manual
Alright here we go again.
Just as a follow up on the previous. Checked about a little more, and found something a bit more informative from the ASX
Investment Strategies
Further on from there and specific to the aforementioned Quiz question
Bear Spreads
And it states the complete contradictory opposite to what the CBOE proclaim as for Margin requirement on a Bear Put Spread
see the pics here -
This is from the ASX saying that for a Bear Put Spread, there is NO margin to be paid ?
Then there is the following from the CBOE
Saying the opposite -
So now the water is completely muddy, and personally, I don't have much more of a clue than when I started looking for an answer on this one.
Thanks ASX for all the clarity of explanation, leaving a million questions still unanswered and yet telling us we need levels of option trading expertise savvy to do a simple long covered call sell.
Just as a follow up on the previous. Checked about a little more, and found something a bit more informative from the ASX
Investment Strategies
Further on from there and specific to the aforementioned Quiz question
Bear Spreads
And it states the complete contradictory opposite to what the CBOE proclaim as for Margin requirement on a Bear Put Spread
see the pics here -
This is from the ASX saying that for a Bear Put Spread, there is NO margin to be paid ?
Then there is the following from the CBOE
Saying the opposite -
So now the water is completely muddy, and personally, I don't have much more of a clue than when I started looking for an answer on this one.
Thanks ASX for all the clarity of explanation, leaving a million questions still unanswered and yet telling us we need levels of option trading expertise savvy to do a simple long covered call sell.
Okay, think I finally nailed Quiz 3, Question 3
Seems that ASX "Investments Strategies" page is quite informative after all, a good resource on looking for answers on option trading in Australia, and a lot of worthwhile links branching off that page.
Investment Strategies from the ASX
Thankyou ASX
Seems that ASX "Investments Strategies" page is quite informative after all, a good resource on looking for answers on option trading in Australia, and a lot of worthwhile links branching off that page.
Investment Strategies from the ASX
Thankyou ASX
