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Trying to reach the $110k mark for IB's portfolio margin. Strategy is fully hedged (no directional risk) and would yield at least 50% return on capital in a year at 10x leverage, but around 100% at my target of 18x leverage which IB's risk calculator seems to allow with ample margin to spare. I...

- What is the required annual profitability (relative to capital used) needed to be considered for prop trading? - What leverage is typically offered? - How does the risk management compare with portfolio margin guidelines at retail brokers? - Do any prop firms support long term and/or...

I am constantly taking the time value column that it does have (at the bid) and adding half the spread to get the actual time value at the mid, but this is annoying. Does that exist somewhere in the column options, or is there a custom calculation column feature or something? It also seems to...

Current blended rate on a $2 million position is about 2.7%. Not sure why no other brokers seem to be willing or able to compete with this. Has anyone else figure out why they are so much lower? For me this is a lot more significant to my bottom line than even "free options trading".

These are american options. That's why people were telling me the theta can't be positive (that euro exceptional case doesn't apply). It's also why I had to implement an option model that's designed for american options. I haven't seen a broker that will run the option simulation over time, only...

When I first encountered a positive model theta in IB, I thought there must be some mistake - theta is always negative right? I looked all around online but couldn't find a good explanation for this. So I ran my own analysis using Bjerksund-Stensland in C# (which was a good learning exercise). I...

Yeah it occurred to me that long puts would have to be used for the delta instead; This is a REIT which is why the high div yield, as are the others I was examining. REM is a broader index of REITS yielding 9% in the case I am worried about company specific risk and might be a better way to...

It appears that individual stocks run the risk array from -30% to +30%. I found that a short call works a little better than a long put. It is so far ITM that its time value is negligible and its delta is unaffected at 30% so that it is calculated to have zero directional risk. The high capital...

I found out in the risk navigator (IB) you can do Settings -> Reference Margin Type -> PMRGN which appears to put it into portfolio margin mode. I have been considering switching to this but wanted to do some scenario analysis first to get feel for it. With a delta neutral stock + put combo...

I usually do dividend capture by buying MOC then selling at limit, but the problem is that IB cancels orders that I've placed beforehand due to the dividend. I'd like to place a limit in advance or timed or on market open that isn't cancelled or adjusted - normally just at the original price I...