[Important] The Sweet Trap of the Minimized Margin Requirement
Hello, this is Nikkei OP Seller, the administrator.
Thank you very much for visiting this blog.
I would like to provide information that can be of help to everyone, so please support me.Lowering the minimum margin.
The minimum margin at some securities companies had been lowered from the 14th, and from the night of the 15th, even major participants seem to have lowered as well.
The minimum margin down to 48,400 yen from 95,900 yen as of the 14th is good news for those who sell D-OTM options.
However,you need to be careful in times like these.
If you get carried away and increase the number of short positions, of course the risk becomes larger.
If you were to take on twice as many short positions, of course the risk would be doubled.
Even more, if the market suddenly surges, the margin for calls will rise sharply, and if it plummets, the margin for puts will rise sharply.
If maintenance margin calls do not come and you are forcibly liquidated, that would be a big trouble.
Please be very cautious.
Option selling strategies are, indeeda battle with one's own desires.
Note) The above is personal opinion and is intended solely to improve financial literacy. Therefore, it was not created for investment solicitation. Also, while the blog content is based on data from reliable sources, the administrator does not guarantee its accuracy. Final investment decisions should be made at your own risk.
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