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August 16th, 2007 at 5:25 pm
Optrader – Well, I wasn’t playing with serious money but the loss still smarts anyway and it is very unfortunate this bad series of events occured and spilled in serious money. I’m not overly worried about being able to cover since I expect a royalty check in the near future which should be be enough play money to refund this and have a little to work with again.
But in working with again, I fully intend not to go all revenge about it and likely just reestablish some positions that were unwarrantedly liquidated and even these would be on a smaller scale. I’ll take my time…
What ultimately was my undoing is the sudden change in margin requirement IB enforced on VIX spreads which went from 0 to 100 over last week (still doing fine) and to 800 this morning thereby triggering the margin call. I was at ~10% in cash on a 20k fully hedged portfolio. But at my level, that’s just what’s needed when margin requirement suddenly goes up by over 10k.