T/A ETF AND INDEX

[capt_jmj]

What is the underlying margin when you trade options? For NQ futures, each contract is "worth" $20/pt, so at NDX 1800, the full value of one contract would be $36K for 1X margin, but the futures brokers will let you trade for as little as $3K/contract on deposit, which would be an effective *12X* margin. So, if you could show $500/contract/week net of commissions, the weekly ROI would be 16.7% for a $3K account balance, or 1.4% for a $36K account balance. However, in case you catch a crab or two in a row, having an extra $K or so is not a bad idea, since the brokers take a dim view of an account that falls below its minimum margin requirements.