I have a lot of buffer left of my margin, but Interactive Broker's software would not let me place an order to sell share-covered calls.
The error message claims it would violate margin requirements. I opened a support-ticket, which got closed by a representative repeating the BS claim that my order would increase my margin requirement beyond the max available. As far as I know selling OTM share covered calls should have no margin requirement at all. I can sell such calls on non-margin accounts.
Anybody else experienced similar troubles with IBKR software ?
It is one thing that they have buggy software that throws out baseless error message, but I hate their attitude in response to customer complaints on said bug.
Today, I got a more detailed response from IB to my complaints to them.
I add here the relevant explanation, just in case others are interested:
A review of the rejected order shows the long TSLA stock was matched with the Long TSLA Puts to create a Protective Put strategy and the Short TSLA Calls were matched with Short TSLA Puts to create Short Straddle strategies. Each time you enter an order to add or subtract from an option class group it will cause the margin requirements for that class to be recalculated. This will be reflected in the new Initial and Maintenance margin requirements.
This is how the margin system is designed. The manner in which option positions are added to or how spreads are opened is not necessarily the same manner they will be closed. The option margin optimization software looks at the new or remaining options in a class group and calculates a new margin requirement. Although you may not agree with the recalculated margin requirements they are correct. If the account does not have the Available Funds to meet the new margin requirement, then that particular trade will not be allowed.
So, @MP3Mike was right, they have combined my various open positions in a different way than I was trading them (and different from how their UI was showing too!), instead of put-spreads and covered calls, they treated them as Protective Put and Short Straddle strategies.
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