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Although IB and Thinkorswim may not have approval levels I would bet that you still have to qualify to trade options. If I am correct maybe the real question is, does a broker with "levels" provide beginners the ability to trade restricted options where IB and Thinkorswim may not give any...

In his subsequent post Riskarb has done his best to satisfy your plea for clarification, so let's not hear anymore whining. Don P.S. LMFAO

I don't know what the implications of "declaring yourself a day trader" are, but if it means your positions are "marked to market" I suspect that Wash Sale and Straddle rules are automatically handled, but I really am guessing here. As far of submitting one consolidated options P/L line I...

I joined OX a few years ago because of their liberal options trading permissions for IRA's. I use IB for my taxable trades but still have my IRA account at OX. I did not do a careful comparison with TOS, but at a glance they seem to offer the same IRA option trading capability. Anybody know...

The straddle rule says that if you substantially reduced your investment risk by investing in another offsetting vehicle you cannot take your loss until your offsetting gain is also reported. Or something to that effect. Do a Google search for a better explanation. It may also affect long term...

I am pretty weak on tax laws, but since no one else answered I'll give you my two cents. I don't think you have to worry about the wash sale rule, but the straddle rule may come into play. I don't think that different option contracts are considered substantially identical hence no wash sale...

OptionsXpress is a decent broker, but their bond commissions are outrageous. They don't pay very high interest on cash so if you want to increase that by buying bonds you cannot. As I recall, they charge $5 per bond. I don't know any broker that is higher. TOS charges something like $1 per...

My impression is that things can happen beyond your control that suddenly puts you in margin hell. For example, if one side of a spread trade is busted you might find your self being liquidated willy nilly. Don

IMHO any liquidation trades done by Timber Hill have no bearing on this issue. Of course, I don't have any personal knowledge, but I am confident that IB is highly reputable and any trades were likely proper. Don

I would not be so sure that your "money is safer in the long run". If the speed limit was 55 mph and GM designed their cars so that the wheels fell off at 56 mph I don't think they would be in business very long. Don P.S. IB is still the best, but I drive at 10 mph.

No one said the customer is "entitled to a phone call" it's just common sense. Also, as I understand it there is no formula for liquidation. They just sell positions without regard to the disruption of your hedged positions. Most customers would prefer a "discriminatory" selling of their...

So you would prefer that IB willy nilly sell out your positions. Makes a lot of sense. Your preposterous rational suggests an ulterior motive and, therefore, I feel compelled to tell you that your words will not earn you any virgins in the hereafter. Don

You may be confusing "margin requirement" with margin borrowing. Your example does not say how much money you borrowed. If you did not borrow any money you will pay no interest. Buying calls as opposed to the synthetic equivalent (stock + put) would probably be cheaper if you actually had to...

I don't understand why IB can't attempt at least one phone call. That doesn't seem like to much to ask before such drastic action. Does this happen so frequently that a phone call is too burdensome? Don (I still love IB) P.S. On a different, but possibly related issue: I don't recall...

I can't believe what I'm reading. IB takes a completely outrageous position to cut their customer's throat without notice and they are getting praise? I was going to post a cartoon to illustrate the ridiculous stance that IB has taken, but now I worry it might inspire riots. How much more...

I always thought that the "cost of carry" is the hedging cost for the person holding the short call. Basically to be hedged they have to own the stock. So the cash to buy that stock is losing the risk free interest rate and apparently it is fair to increase the call price for that factor (per...

Relative to your covered call idea, that would require a naked call in your Roth and I don't know of any broker that allows naked calls in an IRA. Anyway, I'll bet that the IRS will take a dim view of such shenanigans but in my meager knowledge I don't know of any laws that prohibit it. Don

That's not quite correct. 4.313 is the benchmark rate and they pay a little less than that depending on the actual balance. For example, between $10,000 and $100,000 they pay benchmark minus 1/2% which is 3.813%. On the first $10,000 I don't think they pay any interest. Don

Actually, I don't think that IB pays much interest on the credit balance from short stock sales. As I recall, on the first $100,00 no interest is paid. Don

Okay, I think I understand what you said. Was I correct in assuming that IB would not let you open a position if you did not have enough margin to start with? Don