Replies to post #22914 on Cycle Trading

[farooq]

If you writing a put buy way out of money Put,It also reduce margin requirement and limit your loss so peace of mind.
You need 20 % from 205 price so it will require about 4100 cash to maintain position. Calls money is taken out of equity so it is not used in margin calculation.
So if you buy 170 put will cost you 30 Cents but margin requirement will be difference of two, X 100. That is how I am doing and is my understanding.
I may be missing something. Did you sold calls also? In that case that money will be counted.