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 Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: CommanderCricket who wrote (171413)8/1/2012 11:53:14 AM
From: The Reaper2 Recommendations  Read Replies (1) of 178657
 
The downside is IOC shares continue to go higher and/or IV goes higher in the meantime increasing the value the of those puts, thus requiring higher amounts of maintenance.

The maintenance margin is mostly determined by share price. If IOC goes higher the maintenance margin is going to go lower on those puts. The puts would have to increase in value significantly, and I mean significantly, to offset the lower margin requirements brought on by a higher share price.
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