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Yep, no issues at all. Can a client write covered calls against stock which has been loaned out through the Stock Yield Enhancement Program and receive the covered call margin treatment? Yes. A loan of stock has no impact upon its margin requirement on an uncovered or hedged basis since the...

If you hold the options all the way thru expiration of the contracts (i.e: 1:15 PST on July 24th), it's irrelevant. The profit/loss will be based purely on the intrinsic value of the position, which depends only on where the price ends relative to the strike. Up until that time, it is absolutely...

I think this merits a bit of elaboration...IV crush is irrelevant if held to expiration. Op mentioned exiting after earnings but before expiration. IV frequently drops after the earnings announcement, so a big crunch could adversely affect the position. Also, your theta decay on this position...

Since Dest is now off wall papering his house with $100 bills, would someone care to elaborate a bit on the stress thing? I was poking around in Natenberg and don't see this mentioned and the Google wasn't my friend. From his example, I get that you are constructing an equivalent of your desired...

Have you tried executing the commands with their Swagger interface? It's been a bit since I messed around with it, but I know that gives you a way to test drive the interface. Not sure if it helps in your case, but figured I'd mention it. https://interactivebrokers.github.io/cpwebapi/swagger-ui.html

Dest, I really like reading your threads, but dammit man, sometimes I feel like I need to jam a Babel fish in my eyes to help translate all the unfamiliar terms.:banghead: Can you expound on that phrase a bit or at least point me in the general direction of something that will? Thanks loads in...

Riding something to -90% is not "cutting your losses". Also, 100+ calls on NKLA when you've got a 35k account sure sounds like full-on YOLO retard trading to me. He's a gunslinger who got lucky in a high volatility environment, so it makes for great press. Pure survivor bias. They never write...

Part of it is that he's playing with house money. He pulled out $50k already. Plus he's swinging for the fences with option trades. Pretty impressive run, though.

SN, just to clarify, the 960% is what IB would charge you if you were short the shares. It's not the going rate for someone if they borrow your shares. From what I've seen, IB is getting between 350-600% on loaner rates and so you're getting 50% of whatever they get (I was curious so I just...

Good to know. I suppose that only applies in taxable accounts and not IRA? If I'm understanding the IB knowledge base, it sounds like stocks are "usually" called back prior to dividend. That seems like effort on their part. I'd assume they just post collateral and let the end user deal with any...

Interestingly enough, the hard to borrow rate is not necessarily what you will receive. Currently IB hard to borrow rate for NKLA is 967%. I received interest for about 100 shares which were lent out on Friday and over the weekend. For that IB was charging about 450%, which means I only got...

Sorry, but I do not. I'm not that familiar with warrants, but regardless, I'd just pop on to their online chat with the trading desk as that's probably the most reliable info out there. You're probably in for a bit of a wait as they seem to have pretty big lines in the online chat these days.

A few items to note (all based on IB) 1) They can't loan out your shares unless you authorize it, hence the "stock yield enhancement" program (which you have to opt in to...it is not active by default: https://ibkr.info/node/1838. Note that you can't select piecemeal. You either allow them to...

So, just for the record, this is actually a dumb and pretty much useless trade to put on. PNL graph can fool you in to thinking it's (much) better than it really is, but also some stuff to consider from the real world: 1) Early assignment (pretty much guaranteed). 2) Cost to borrow. Assuming...

Excuse my daftness, but i'm a bit unfamiliar with the lingo. What do "keep an eye on your forward" and "at retail" mean? Thx

luckfnlou, I'm looking for a theta burn/volatility drop. Read a post where somebody (Dest, but can't recall the alias) said time/vol are synthetics of each other. As Jeremy Irons said in Margin Call "Give me some rope" (while I paraphrase). To me, that means theta decay and vol drop are two...

Thanks Dest. Am I correct in the understanding that the main risk is early assignment? At expiry inside the body, it's basically a wash as you can't be long/short the same underlying in one account, so assuming equal sizes, it's net zero. Before expiry, that's another story. You get assigned...

FFS1001, I think you nailed it. Looks like a short box spread. For those who are interested, here's the ironyman link Seems like major risk (other than ridiculous over leverage) is assignment and auto-liquidation.

And my understanding of the major risk of a box spread is assignment risk, correct? I recall seeing a video where some RobinHood guy (Ir0nyman) loaded up on a ton of contracts and then got crushed.

If it were an OTM put vertical and an OTM call vertical, I think it would be an iron condor. A strangle is also normally OTM and I believe it's called "inverted" if your put/call are both ITM. The long OTM wings are just that. Perhaps it doesn't even have a name (IB just lists it as a "combo")...