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Yes, I totally understand, it's what I would have assumed as well. I probably should have given more background about myself since I'm new to posting on this board. Technically I guess I am still an options rookie, going by the number of actual trades under my belt, but I don't really consider...

Thanks. I have a solid understanding of straddles. The "experience" is not really for me to learn about options, just to satisfy IB's 100 trade rule. Straddles are one method I might consider to get those 100 trades, and I would probably take those odds you mention...I agree they can be...

Agreed, those two factors are important, but for the CC strategy I have in mind, commissions will make or break the profit margin. It's very low profit, but nearly zero risk. And it would probably be the only type of trade I do in that specific options account. I can't say I'm thrilled with...

Thanks for the suggestions everyone. $1 contracts are what initially attracted me to MB, I'm cheap at heart and can't stand paying 3, 5, or 10 times as much somewhere else. I don't really use any broker-provided services other than execution...do my own research with various outside...

Let me pose a different question: Can someone please give me the name of a broker (Penson-cleared or otherwise) who does credit your account with a covered call premium immediately, pay you interest on it, AND give you buying power? I may be switching soon...

The plot thickens...I spoke with a rep at Penson who seemed knowledgable about the process and he agreed that there should not be any restrictions on the premiums of a covered call. He said this is not their policy. :mad: Now it is my mission in life to get MB Trading to either change their...

Ok conveniently enough, they don't post that in their online documents... I also just spoke with rep #3 who agreed with rep #1 and said I will not get the premium or the interest on that premium. He tried to explain it to me in terms of an "escrow" sub account that Penson holds for me...and...

Thanks for the response. Shouldn't that premium be part of the new buying power? How is the account credited if you're not allowed to spend the credit?

Thanks. I just spoke with another rep at MB and he said I will see that premium within 1 business day after the sale. That makes more sense, but it's not what the previous rep told me. The second guy said he will send me their official policy documentation.

Thanks for the responses. As new as I am to options, I just couldn't see a clear advantage to writing an option and waiting until expiration to get paid...glad to know my first instinct was correct. Do you think there's any way to fight this? Is this kind of thing regulated by the SEC...

This post is related to another in the retail broker forum. I use MB Trading (clearing firm is Penson), and found out recently that when I write a covered call the premium is being "held aside" by Penson in a separate account until the option is called, expires, or I buy it back. I am new to...

...assuming that 'tdatspectral' stands for TD Ameritrade Spectral, this guy may end up having to change more than just his broker... :D

Any thoughts?

This may be a really noob question, but I am just getting into trading options. I had an interesting conversation with a rep at MB Trading yesterday. He informed me that when I write a covered call (or any option for that matter), the premium is not deposited as cash in my account, but is...