I’ve written a program that models future stock volatility for all equities and have been trading on the long side via ATM straddles for the past 6 months.
Revisited the short side (options overpriced) recently and was hoping to get some ideas on how to trade. The most straight forward would be a naked ATM straddle but IB margin requirements are 3-10x your credit (portfolio margin acct). Here is how they calculate the margin:
Stock Options
Call Price + Maximum ((20% 2 *…