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You would buy boxes, not sell them gain extra interest on idle cash.

Interesting

Yes, this would be another advantage. Buying a box for under even, it expires for even (whatever the width of the box is) . This "interest" would be booked as a profit which would be treated under the 60/40 rule.

Probably better advice than mine.

Not sure why you are calling this an illiquid stock. .04 wide, 1000 up seems pretty liquid to me. Assuming you buy at the mid point vs the offer, you are talking about a difference of $20 total. I would just put a 14.47 bid in, and if not filled right away go up to 14.48 then pay the offer at...

You could simply buy a wide box in the SPX. Minimal commissions, and you can decide how far out you want to go. Put the order in as a spread at the implied rate you want to get. If you're not filled, you can walk the price down to the minimum rate you are willing to take.

Depending on what your are trading, orders over a certain size may go to a broker instead of directly into the COB with TD(SPX and VIX) Other than this, all their orders should go directly into the COB, and it shouldn't matter what broker you use (if the order is sent to the CBOE)

Using TOS platform through TDA, you can direct your orders. I see 9 exchange choices for single orders, and 3 for spreads (CBOE, PHLX, and ISE)

I would suggest you take Bob up on the offer. There are so many contingencies on rebates, such as penny/non penny, etf, filled vs customer or non customer, etc. You really need a full pricing schedule vs just a few general amounts that I posted.

For non penny equity single leg customer orders, providing liquidity, the following exchanges pay nothing and charge nothing, Amex Cboe Box Ise Mcry Miami Phlx.

Each exchange has different rates based on whether you are adding or taking liquidity, whether it is a complex order, whether it is a penny class option, etc. The highest rebates for non penny, customer, single leg options are Bats and Pearl, both paying .85, then C2 and NSDQ paying .80, then...

You don't pay for short stock when day trading. Currently there is no charge for holding overnight either. Even if you don't pay for short stock, you are still "paying" when you don't get a short stock rebate. When you short a stock, you generate cash which should earn you interest. If you...

Clear through Apex, they are providing the short.

I put a locate in for Lyft right after I read your post. Was very surprised that it came back with a zero rate as well. Confirmed by our back office. When I look at the options prices it appears they also are using a zero rate. Note that normally you receive a rebate when you short a stock...

So it sounds like you are locked into IB and just want to know the plus/minuses? Lots of good and bad with them. Since you mention you are trading 1256 contracts, I assume you may be trading SPX. Be aware that you will pay exchange fees here with IB, that can be as high as an additional .77...

Expect the premiums to be very high. I would assume it would also be hard to borrow, which would add even more to the put premiums.

The CBOE announced they will begin trading in Lyft options on Thursday. Should be interesting to see where they price vol. I assume it will be hard to borrow as well.

If you don't have a good understanding of the risks of your position in the tender (I don't so I can't tell you how it will work out) I think you should exit the position before the tender. You can enter the order as a spread to give up less edge.

Many options markets are quite wide. When a customer places a better bid/offer quite often they are joined by many different market makers. With customer priority, they will be filled before these other joining market makers. The problem is there are many different options exchanges. When...

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