Margin reductions

[Mofra]

Howdy,

A question for the more experienced writers out there, personally I only have experience writing straight calls / puts.

In writing verticals (bull puts & bear call spreads) can I expect much reduction in margin requirements from ACH?

From memory margin is calculated from net exposure but would enjoy some indication from someone with practical experience.

Thanks in advance

 

[money tree]

risk margin should be reduced considerably.

the asx website has a margin calculator. enter your positions and it will give an accurate amount (based on previous close though, bear this in mind)

when you find that becomes too painful write an excel sheet that does it all for you (I did this few years ago and one of my students may have it still)