Recent content by dave_s

magaconservatives.com

A lot of the suburbs are still very upset that their federal taxes went up because of changes to the federal tax code for SALT deductions, etc.

Actually the quote is not based on each stocks open. It is the SOQ for the stocks and the basket in the index. https://www.cmegroup.com/education/files/understanding-the-soq.pdf

Look at the work of Neil Chriss relative to the skew or "volatility smile" http://www.amazon.com/Black-Scholes-Beyond-Option-Pricing-Models/dp/0786310251 http://bfi.cl/papers/Derman Kani Chriss 1996 - Implied trinomial trees of the volatility smile.pdf...

The best advice that I can offer is to go through the SEC rules and see how they apply to your specific situation. It may take a little time, but I think it might be worth the investment of effort.

Here is a reply that I sent when they tried this twice on me. I do not believe that my account is anywhere near the requirement for Large Trader Classification. The requirement of 2 million shares a day or 20 million shares a month translates into 20,000 contracts a day of 200,000 contracts...

If one trades in only 1256 contracts, is there a benefit of detriment from a tax perspective to be treated as a proprietary trader?

Sage primarily clears through Merrill all of their clearing firms use this same stress scenario, 20 to 25 percent down and a 50% spike in Implied Volatility.

The problem with IB is their auto-liquidation algorithm that can be triggered by a wide quote at almost a moments notice for short SPX option positions. I don't know anything about Wedbush. Do you deal directly with them or through an introducing broker?

Moving it into multiple accounts doesn't help if they all use 25% and 50% down stress conditions.

APEX clearing is the primary cause of the dry up of PM, with 25 and 50 % stress tests. Think or Swim only allows net 200 contracts short per $100.k in equity.

I would come with my own funds in the seven figure category.

With the demise of portfolio margin due to increased requirements of clearing firms, I am interested in finding a Prop Firm with equivalent allowed leverage for swing trades (15 to 90 days). I almost exclusively trade SPX options. Any ideas?