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  1. rmorse

    Exercise of call option on a dividend paying stock

    No. Look at the Put. If the dividend - interest carry cost, is greater than the value of the put, most traders would exercise the call. There is still normally a small open interest even with that condition.
  2. rmorse

    Need help finding Discount Broker with competitive money market/savings rate

    Sorry, not going to happen. Fed funds are currently around .20%. They are not going to pay you interest of more than that unless it's a teaser rate. Most accounts pay near zero right now.
  3. rmorse

    NLY spike down?

    This is all I found: Agency REITs continue to recover after significant bounce following a sharp sell-off in the first few minutes of trade (Stock Price: 16.73 Change: -0.54) Briefing - Jul 29 at 09:58 Company Symbols: NYSE:NLY Debt ceiling uncertainty, possible U.S. credit...
  4. rmorse

    liquid index options

    In the US, SPY has the most volume and the tightest spreads. SPX also has a lot of volume, but the electronic markets are very wide.
  5. rmorse

    The Cheapest Option Broker

    Of course everyone wants their expenses for trading to be as close to zero as possible. If you're trading as a business, not as an investor, I feel you have to be concerned the the entire offering, including price. Which firm offers the best package of price and service that allows you to...
  6. rmorse

    Are There Flaws In Options Pricing?

    Your cost of capital, not risk free return is only one input into option pricing. And, unless your trading longer term options, normally the input in the model that is the easiest to value. That said, if you believe interest rates will rise quickly, you would want to put on reversals in leaps...
  7. rmorse

    Equity Options vs Futures Options

    You can use financial futures and options on them to hedge an equity portfolio, but remember, you get no margin relief. So, when you get a profit in one, you can get a margin call in the other. This is not a good idea for small or leveraged accounts.
  8. rmorse

    options commissions

    What kind of volume can you do per month that someone would offer you "cheap" commissions? What's cheap to you?
  9. rmorse

    halted stocks and options

    I thought you asked this before. If you fail on delivery, they can't buy you in unless the stock is trading. With regard to large accounts being treated differently, they are not. When you're trading in a margin account, the clearance firm is failing, not you. The short stock is in street name...
  10. rmorse

    Trading options in Portfolio Margin account

    Penson does not have their own Real Time Margin calculator for external use, or their own platform. They allow for third party platforms. As the Introducing Broker, if your account has under $5mm, it is our responsibility to monitor margin, and the account holders responsibility to not use more...
  11. rmorse

    Trading options in Portfolio Margin account

    The best thing to do is call and ask. Before the take over, they cleared through Penson. They might not have moved everyone over yet. Or, it has to do with the way you opened your account. I did a broker check of the name THINKORSWIM, and they are not currently a FINRA broker dealer, but TD is.
  12. rmorse

    Trading options in Portfolio Margin account

    TOS is a platform owned by TD Ameritrade. So no, TOS is not a Introducing Broker to Penson. If you open an account with TOS, your opening an account at TD which is self clearing.
  13. rmorse

    Trading options in Portfolio Margin account

    The website is not real time. It uses the close from the day before. Bob
  14. rmorse

    Various Limitations Imposed by Brokers on Option Positions

    It's my understanding that the restriction on two side markets for customers trading options, are rules on the exchanges, not an SEC rule. Because, if your account is labeled as "professional Customer," most option exchanges allow two sided markets. They charge extra for floor execution fees for...
  15. rmorse

    Do you trade more than 10,000 contracts/month?

    I understand your concern. However, if you want to be a net seller of options, trading in a Reg-T account is very difficult. Also, PM is risk based, Reg-T is cash based. You can have a large position in PM that is hedged with limited risk and take advantage of the leverage, without having a...
  16. rmorse

    Various Limitations Imposed by Brokers on Option Positions

    To my knowledge, there is NO limitation to a "customer" entering a two side market on spreads. Spreads are either held at the broker or in the complex order book. They are not represented on the individual markets. With regard to GPV, is this a Reg-T or Portfolio Margin account?
  17. rmorse

    What is an Introducing Broker

    An Introducing Broker (IB) is a broker dealer that has an IB relationship with a Prime Broker. The Prime Broker is where your cash and securities are custody and cleared. The IB offers the relationship to the Prime Broker for you. The IB becomes the next inline on the losses on your account, so...
  18. rmorse

    Do you trade more than 10,000 contracts/month?

    With options, I would consider an "institutional" account one that trades more than 10K per month. Of course, someone that trades much less can end up with higher returns or a higher profit. But I'm trying to get an idea of what % of readers in this forum trade more than that level. Those...
  19. rmorse

    Do you trade more than 10,000 contracts/month?

    If yes, do you trade in a Customer Portfolio Margin Account?
  20. rmorse

    hiding your trades

    Every employee of every US BD has to report their trading activity. I can't believe people really do what your saying. I can tell you, it won't happen at my firm. We don't trade with or against our clients. We don't share their strategy.
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