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At times IB has charged me very small fees for shorting stock. I would be horrified if they charged me anything significant without some warning. As I recall their web site warns of such fees. Years ago when I read it I assumed, possibly incorrectly. that they were very small. Be good if...

If you are able to borrow the stock and sell the conversion, I would worry about your subsequently being forced to cover your short stock position. I have never been forced to cover a short stock position, but I am under the impression that it can happen. Maybe somebody else can comment...

R0bert, I think SHLD shares have very high short interest and are probably not available for shorting. That probably limits arbitraging the put call disparity that you found. Don

Think about this scenario. The stock rises significantly and the stock gets called away in June. Then you have to re-buy the $5 strike CC DITM with likely much less time value than the 42 cents you got for June. If the stock price stays higher repeated CC's with such low TV could mean you never...

Since nobody else answered I'll contribute what little I know. Yes, options trades can be broken and they can leave you net short as in your example. The good news is that this has happened to me only once about 8 years ago. My broker automatically resubmitted the order and fortunately the...

With IB you setup a Combo order to buy one option and sell another. Then you can make it conditional by highlighting the un-transmitted order line and right clicking modify, condition. Then you can specify the condition you desire (either on the underlying or option price). Like everything...

So ignoring the mechanics of your explanation it sounds like the philosophy of my #2 example applies (the government loans the money out). If that's right (that it's loaned out), in order for the dollars in circulation to increase over time the ongoing loan amounts must be higher than the...

Thanks, guys, for the replies, but I still don't get it. The replies seemed to describe mechanics, but I was looking for a simple philosophy explanation. Also, some of the replies seemed to be talking about existing money, not newly printed money (e.g., Foreign Central banks buy US...

Can someone give me a simple explanation of how the supply of new dollars is introduced into the economy. I'm looking for a real simple one or two sentence summary. Here are some examples of the type of answer I am hoping for: 1. Dollars are printed and given to political contributers. 2...

As I recall an ITM CC may disqualify the preferential dividend tax treatment. Don

There are several sites where you can display an entire option chain and copy and paste it into Excel. CBOE is one place. They even have a .CSV file download. BTW, Excel can read web pages directly. If you are Excel savvy by using this capability you can automate putting options chains...

See if this thread helps. http://www.elitetrader.com/vb/showthread.php?s=&threadid=110264&perpage=6&pagenumber=3

Okay, I got it now. Yeah, seems to me selling short something that you previously held long is quite a different position and should not be subject to any wash sale implications. Don

Assuming that you mean that you hold long stock while simultaneously selling short (say in a different account) I think that is deemed a constructive sale. Meaning you have a wash sale. Don

If you are saying that CC's are ng because NP's are a better equivalent, in some cases I would beg to differ. The reason that CC's might be better depends on your broker and the interest they give on your cash. OptionsXpress, for example, in their IRA's any cash securing a NP earns minimal...

Of course, there are no absolute answers to your questions. Everything depends on you ability to predict the underlying stock movement. About the only thing I would suggest is not to always wait for expiration to setup your next CC play. Many times rolling to the next month prior to...

I have seen spread orders that I entered through OptionsXpress appear on the IB combo screen. I don't think I have seen vice versa, but I have not looked that often. My understanding is that the combo order is submitted to an exchange who, in turn, feeds back the pricing to other brokers and...

I think I would consider the two transactions independent trades and book the P/L for each accordingly. If the leap is held more than 12 months I would consider it a L-T cap gain. As I recall, the IRS says that if you substantially mitigated the risk with an offsetting position then your L-T...

I just found a solution to display contract IV on the IB main trading screen. In this thread myself and a prior poster complained that apparently an "enhancement" had eliminated the ability to display contract IV on the main trader screen. Well it seems that there are two columns available...

Just to amplify/confirm what a poster said earlier, with IB you used to be able to display IV for individual options on the main trader screen. Apparently an "enhancement" changed that capability and now the IV column on the main screen only presents figures against the underlying stock. IV...