Broker silently changed the conditions...

[vanzandt]

The regulators allow you to set requirements about minimums.
No other TD/Schwab people griping.
These circumstances generally get worse.

That's because he's too stupid to know he's done 3 gf violations.

@Magna--- this guy is taking me off block to quote me, and then putting me back on. Didn't Baron restrict D's block function for that?

Regardless if there's a glitch in the block function that he can do that without taking me off block, I still can't respond. He needs his block function restricted so I can properly address his posts spoken directly TO me. I'm allowed to answer. There's a difference between talking about a member when you have them on block, and talking TOO a member when you have them on block.

 

[vanzandt]

Three things here.
1) Your proficiency of English writing is lacking and it's very hard to discern most of the time.

2) The fact that you were talking about a $3.80 credit on a $4 put was so off the wall, it did in fact make me think you had messed up your phraseology.

3) I asked you that politely, out of deference to English being your second language. I was being quite respectable and trying to help you, you little fuck. And you decided to get all nasty. Lemmee tell you something kiddo, I was writing/trading options before you were even born. Case closed.

That post proves nothing aside from the fact that once again your writing is horrible and as best as I can ascertain, you were trying to withdraw money from you're pitiful $500 account and you ran up against that wall then.

It in no way implies that you understand those rules as it applies to trading in your account.

And yes, I realize customer service would send notification... but you don't get a call when you have a $500 account. They save those for clients that are a little more important. They can get quite busy dealing with rookies that make rookie mistakes such as yourself and then whine and cry about it. The best you'll get is an email the following day I would assume.

Your stupid. But if you're gonna address me quit being a little bitch-ass coward and address me man to man instead of block on/off so I don't have to bitch-slap you with screenshots.
Got it?

 

[vanzandt]

Then how can Tasty Trade clearly state: The premium received from the sale of the put can be applied to the initial requirement.

Because you can--- the next day--- when the funds are settled in your account.

But when you make the trade, the minimum amount required in the account is the strike plus whatever commission they charge.

Maybe send them a note however, and suggest they clarify that for the .001% of people who buy $4 puts on 20 cent stocks in $400 accounts.

 

[zdreg]

This clueless @vanzandt guy was asking me what I mean by "premium". Priceless! ROTFL!
And this guy wants to participate in a discussion on options trading...

The mistake you made was getting in a tit for tat conversation with the two of them. In the future just ask simple questions and don't get distracted when attempts are made to complicate a simple question

 

[BMK]

Because you can--- the next day--- when the funds are settled in your account.

That doesn't make sense.

The statement on TastyTrade says that the proceeds from the sale of the put can be applied to the initial requirement. If the proceeds are not applied until the next day, then they are not being applied to the initial requirement, but rather to the maintenance requirement.

The initial requirement only exists when you are opening the position.

At face value, the statement on the TastyTrade website means that the proceeds from the sale of the put are indeed taken into account when calculating how much money you need to have in order to open the position.

BMK

 

[vanzandt]

That doesn't make sense.

The statement on TastyTrade says that the proceeds from the sale of the put can be applied to the initial requirement. If the proceeds are not applied until the next day, then they are not being applied to the initial requirement, but rather to the maintenance requirement.

The initial requirement only exists when you are opening the position.

At face value, the statement on the TastyTrade website means that the proceeds from the sale of the put are indeed taken into account when calculating how much money you need to have in order to open the position.

BMK

Well, try it then. Maybe they need to rewrite whatever it is on their website, but trust me... their system is not letting this trade go thru. You are not selling a $4 put on a a 20 cent stock with $21 in your account. You are not even gonna be allowed to to do it with $399 in the account. $402 of settled funds? You're good to go.

 

[vanzandt]

You are the best @vanzandt!! Learned something new from you today.

Here's the other thing that perhaps might have happened to this idiot. He may have only done one good faith violation, I mean I thought of that when I wrote it, that you'd think if he got three he'd at least have seen the email notifications... but I bet their system is setup such that if one occurs, even if it's the first one, they are locked out instantly and only allowed to trade with settled funds in the account. Pretty sure that even if it's the first violation, the customer has to call in and get it lifted.

Odds are that's what happened, and the rep he spoke to didn't see it on their system as it would take a day to show up, but the actual trading system locks him out from trading instantly outside of settled funds.

I read some of his other posts... I mean the questions he asks, are like option level 101. And in every thread, he starts an argument and starts with the name calling when someone that tried to help gives him an answer he disagrees with. It's like grow the f up already. I bet this kid is one of these 35 yo male virgins you read about now. Complete f'n geeks that are so mal-adjusted to the real world, social interactions are next to impossible for them. Whatever. Have Ken post a link for a plastic doll. That might help.

 

[TheDawn]

That doesn't make sense.

The statement on TastyTrade says that the proceeds from the sale of the put can be applied to the initial requirement. If the proceeds are not applied until the next day, then they are not being applied to the initial requirement, but rather to the maintenance requirement.

The initial requirement only exists when you are opening the position.

At face value, the statement on the TastyTrade website means that the proceeds from the sale of the put are indeed taken into account when calculating how much money you need to have in order to open the position.

BMK

SELLING AN OUTRIGHT PUT REQUIRES THE TOTAL CASH-SECURED AMOUNT

EXAMPLE OF SELLING A CASH-SECURED PUT
Sell to open 6 Mar 11 puts at $0.75 = $0.75 x 6 qty x 100 = $450 credit received

6 x 11 x 100 = $6,600 cash-secured amount

https://support.tastyworks.com/supp...ent for,buying power requirement is different

Not you too, BMK.

 

[TheDawn]

Here's the other thing that perhaps might have happened to this idiot. He may have only done one good faith violation, I mean I thought of that when I wrote it, that you'd think if he got three he'd at least have seen the email notifications... but I bet their system is setup such that if one occurs, even if it's the first one, they are locked out instantly and only allowed to trade with settled funds in the account. Pretty sure that even if it's the first violation, the customer has to call in and get it lifted.

Odds are that's what happened, and the rep he spoke to didn't see it on their system as it would take a day to show up, but the actual trading system locks him out from trading instantly outside of settled funds.

I read some of his other posts... I mean the questions he asks, are like option level 101. And in every thread, he starts an argument and starts with the name calling when someone that tried to help gives him an answer he disagrees with. It's like grow the f up already. I bet this kid is one of these 35 yo male virgins you read about now. Complete f'n geeks that are so mal-adjusted to the real world, social interactions are next to impossible for them. Whatever. Have Ken post a link for a plastic doll. That might help.

You are too nice, vanz. You spent all this time and effort trying to help him and what did you get? A block from him as I told you would get. This is what all of us got eventually after trying to help him. I gave up on this guy long time ago. He blocked me anyway. All of his questions can be answered either by Investopedia or the customer service of his broker and are really not worth our time and efforts. Better to leave him to the customer service of his broker to deal with. Very soon he's gotta have to block the customer service of his broker because they are gonna tell him the same thing as you have been telling him. LOL

 

[zdreg]

That doesn't make sense.

The statement on TastyTrade says that the proceeds from the sale of the put can be applied to the initial requirement. If the proceeds are not applied until the next day, then they are not being applied to the initial requirement, but rather to the maintenance requirement.

The initial requirement only exists when you are opening the position.

At face value, the statement on the TastyTrade website means that the proceeds from the sale of the put are indeed taken into account when calculating how much money you need to have in order to open the position.

BMK

Well, try it then. Maybe they need to rewrite whatever it is on their website, but trust me... their system is not letting this trade go thru. You are not selling a $4 put on a a 20 cent stock with $21 in your account. You are not even gonna be allowed to to do it with $399 in the account. $402 of settled funds? You're good to go.

There is no need to rewrite the website*. The statement is correct and is industry practice.

Here is a similar kind of example to a cash secured trade example. stock is at 100 the call strike price is 10. premium received is 92. How much does the client need to deposit.
You can have zero account if the broker knows you and is agreeable that you will make a deposit by settlement date.
Remember brokers can make additional requirements above the legal minimum requirements. e.g. day trading account is 25k. minimum. The broker can decide 100k minimum.