Option Investor


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Mike - How large of an account do you need trade the CPTI trades? -- George B

Hello George - I started writing the newsletter with an account of $40,000 - $50,000. But, it's not necessary for you to have that much to benefit from our non-directional trades. While I may trade 10-15 contracts per trade, you can scale down the number of contracts to fit your . You may not be able to trade all the positions, but will still be able to participate. As your account grows, you can slowly increase the number of contracts you trade.

Most of what you need will be for maintenance requirements on a variety of credit spreads. This maintenance can be in the form of cash or the use of margin of other assets -- stocks, mutual funds, bonds, CDs, Treasuries, etc.

The less maintenance held against your credit spread positions the better -- and the more efficient use of your trading capital. Some brokers are better than others and maintenance policies vary. If you're going to trade CPTI strategies, it's important to have a broker that has the right maintenance policies.

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