Monday, February 28, 2011

2/28 Daily Summary

No adjustment Today, I'm gearing up to defend the position against an up-side movement. Right now the down-side is well covered and hedged. I had a run with TOS margin calculations Today. It is pretty complicated to explain but the bottom line TOS is using a new margin tabulation method that locks down more $$ out of my account than I'd expect. So Today when I was planning to adjust my trade it wouldn't let me do and I had to eliminate all my cash-secured put positions and call TOS to free up my capital so I could at least enter the contingent orders.

Bottom line: While in the past their margin was equal the max amount at risk in the trade, their new method does some weird calculation and pairs up my trades in a strange way, this gets complicated because I had a partial butterfly roll, so it is locking down more money than I could potentially lose if we were to expire beyond my B/E. I have to review my trades and adjustments now for the impacts on margin as well as the impacts on total capital at loss. More complexity to take into account as I want to utilize the most of my capital and use cash-secured puts or covered call on the cash that is sitting in the account.. in order to maximize I need to study this further..