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Does anyone know if the margin for covered calls is calculated correctly? I'm having issues with selling strangles when I sell them separately it doubles the margin and doesn't calculate it correctly. Do we know if quantconnect correctly calculates the margin for a covered call? Example. If I own 100 shares of QQQ and sell a call on QQQ will quantconnect calculate that there is margin required or will the margin required for that covered call be 0 since its covered by the shares owned?
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Louis Szeto
Hi David
You may use a ComboOrder with the underlying security and the call to be shorted to be the legs. The margin requirement will be automatically adjusted.
Best
Louis
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
David E
What if you own an asset, 100 shares of QQQ, and want to sell covered calls DTE0 daily on them? It’s the same thing and the covered call should have no margin requirement. I also can’t buy them in combination… any suggestions?
Louis Szeto
Hi David
If you are getting into a known strategy asynchonously, LEAN will recognise and match the legs up, dropping the extra margin requirerment. Refer to this doc for more.
Best
Louis
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
David E
The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.
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