Search results

to clarify from your post -- the fee looks at -30% OR +20% the fee is not charged on Fridays, but on Saturdays, since Friday is a weekly option expiration. comments -- I hate this fee, paying it everyday. It does nothing to make the customer change their strategy nor does it...

I'm not going to leave, but I am going to sell less options so I don't have to pay any fee. Therefore, this fee is costing them money (less commissions) instead of making them money.

But they price an SPX 1800P at $0.50 that expired 6/13/14. It expired, its price should be 0.00 not 0.50. (SPX is 1935)

After stuff expired Friday, closing some short options, making a deposit, and stopping writing options I should not have had any excess exposure. However, 2 things caused me still to have exposure ... 1) the OCC prices of SPX options that expired yesterday were not 0, but some positive...

I got the notice too. It seems to be a new thing since the "Stress Test" page did not have a box with the estimated fee in it until 5/31/14. From what I can tell with some rough calculations the daily fee is computed by (Max exposure {-30% move, +20% move} - NetLiq) * .0000116 ie...

I wouldn't be surprised considering it is hard to get any decent premium on SPX these days. I don't like the trade if it is a bunch of naked VIX calls, October is a long time away.

Thanks for letting us know ...

I would rather own 1 put at 560 for 0.45, then 10 at 522.50 for 0.045. There are not many times that the 522.50 is going to beat the 560. also - less commission

wikipedia? http://en.wikipedia.org/wiki/List_of_S&P_500_companies#Recent_changes_to_the_list_of_S.26P_500_Components

First, 200 shares will have a lower commission than 125 shares if you are providing liquidity, and I think that is what happened. (ie. one time you removed liquidity, and the other time you added liquidity, that was instantly filled). However, this can be checked on your daily statement, if...

Maybe a better grasp of common sense.

If I were playing a same day option, I would be doing it ATM.

A bit misleading. But you could buy at 0.02 near the open (so $3 with commission). And value at close 1.63 (so $162 with commission). So a 54x increase. Do you think this trade pays off more than 1x per year at this rate, I don't. There were a few factors which made this a good trade...

What does it matter if it moved outside and then back inside the 2 SD level. She would have a margin call way before it even got to 2 SD.

looks like the SEC fee as a percentage of sales.

Could also just buy loads of $0.05 deep OTM $VIX calls to hedge each month, but that would eat into the return a lot.

What are your commissions? So many small trades the commission might be too much percentage-wise to make winning profitable enough.

It is very liquid 1-3 months out. Not so liquid as far out as you are talking.

Thanks for the screenshot. How did you initially know it was looking at 10% down for that margin use calculation? I speculate IBKR uses 20% down look because it was 2x what you quoted. So from the data a 2% down move in your case increases the margin by ~30%. So in the IBKR case a 2%...

522.5 >520 which is why closing creates increased margin use. you have to look at all the positions in the same underlying when determining your margin, you can't look at each of the trades that you subgrouped together individually.