Market's Up...... - Thursday, page-19

Your options margins are reflective like if you had an ETO account.

Approximately 20% of the notional value of your trade (combined) is usually a safe margin unless you have other positions to offset it.

ETOs use novation as collateralisation, meaning options offset each other. For instance if you are short 100 contracts of 5850 calls and long 100 contracts 5900 calls then your maximum collateral required is the 50 point difference multiplied by 100 contracts.

Then the time value is inserted along with the premiums received (if any) to constitute the remaining variation margin.

But speak to a licensed advisor.