Broker silently changed the conditions...

TheDawn said:
You are just trying to win an argument as a troll as what you do in every single thread. Everybody can see that. .
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Well you are batting 1000 now aren't ya? I missed it with The-Imp, and I was giving Zdreg the benefit of the doubt. He didn't take my criticism of his little thread too well. The part about the difference between intentionally trying to deceive someone, ie "lying"... and just getting into a typical ET spat with an idiot, went right over his head and pushed his buttons. I swear, these people wouldn't last a day in the real world. :cool:
 
zdreg said:
It would speak better of you if you had said I have already reported you to the mod. In any case be my guest. Please send me a copy.
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I didn't report you. I just reported the duplicate thread that you created on exactly the same topic in the "Psychology" section.
 
TheDawn said:
I didn't report you. I just reported the duplicate thread that you created on exactly the same topic in the "Psychology" section.
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Have you read any of this guy Zdregs posts? He's a died in the wool Trumpy.
No shame in reporting him.
 
Watch how many buttons that one pushes.
Watch how fast he logs off and logs back on to read my posts.
Difference is, I don't play the block/unblock game.
I make the idiots work for it.
 
vanzandt said:
He's a died in the wool Trumpy.
.
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See how he fell for it?
Now that's the definition of a lie.
On my part. No idea on this girl's politics... just making a point.
Deliberately.
She whined, deleted, and then made another post in feedback
>>>> case closed. :p
 
I think this case luckily already has been solved, especially with the real tests of @BMK and the correct interpretations by others of the requirements for the CashSecuredPut (ie. a ShortPut in a CashAcct).
The formula is this:
InitialCashRequirement = Strike - Premium
Ie. as already said, $20 (plus commission) really suffices to open a CashSecuredPut trade with strike=4 and premium=3.80.

Of course people should be aware of the fact that such a ShortPut is a bullish trade, much like a LongCall.
 
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###########
(Me writing to support)

Dear Mr. XXXXX,
just a final question:
what is the basis for PnL% calculation for such a CashSecuredPut trade? Ie. the invested amount?
Is it the StrikePrice or "StrikePrice minus PremiumReceived"?
I just mean this mathematical basis.

And are you aware of the fact that other brokerage firms use this CashRequirement formula for such CashSecuredPut (aka CashCoveredPut):
(StrikePrice x Multiplier x Contracts) - PremiumProceeds
Cf. https://www.tradestation.com/pricing/options-margin-requirements/

Whereas you (TD) seems to use this:
(StrikePrice x Multiplier x Contracts)

There is obviously a big difference.

Thank You.



###########
(Support replying to my above webmail, but not Mr XXXXX but now a Mr. YYYYY :))

Thank you for your email, I hope you are having a wonderful evening. My name is YYYYY and I would be more than happy to assist you.

Our policy is maintenance requirement for a cash secured put is: Cash to cover the exercise value of the option (strike price x number of contracts x multiplier)

Any premium received will certainly be used when calculating option buying power effect. But the margin requirement will need to include the entire amount of the assignment. The basis for not including the premium in the margin requirement is because if you do get assigned your cash-secured put, you will need the entire amount of the assignment available to facilitate your obligation of the assignment.

I hope this helps. Should you have any further questions or concerns, please do not hesitate to reach back out to us.

[...]
###########


Q1: Can anybody decipher what this support guy tries to say?
He even is talking of "margin" :)

Q2: Has my question really deserved such an unqualified answer by such a clueless support?
 
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earth_imperator said:
###########
(Me writing to support)

Dear Mr. XXXXX,
just a final question:
what is the basis for PnL% calculation for such a CashSecuredPut trade? Ie. the invested amount?
Is it the StrikePrice or "StrikePrice minus PremiumReceived"?
I just mean this mathematical basis.

And are you aware of the fact that other brokerage firms use this CashRequirement formula for such CashSecuredPut (aka CashCoveredPut):
(StrikePrice x Multiplier x Contracts) - PremiumProceeds
Cf. https://www.tradestation.com/pricing/options-margin-requirements/

Whereas you (TD) seems to use this:
(StrikePrice x Multiplier x Contracts)

There is obviously a big difference.

Thank You.



###########
(Support replying to my above webmail, but not Mr XXXXX but now a Mr. YYYYY :))

Thank you for your email, I hope you are having a wonderful evening. My name is YYYYY and I would be more than happy to assist you.

Our policy is maintenance requirement for a cash secured put is: Cash to cover the exercise value of the option (strike price x number of contracts x multiplier)

Any premium received will certainly be used when calculating option buying power effect. But the margin requirement will need to include the entire amount of the assignment. The basis for not including the premium in the margin requirement is because if you do get assigned your cash-secured put, you will need the entire amount of the assignment available to facilitate your obligation of the assignment.

I hope this helps. Should you have any further questions or concerns, please do not hesitate to reach back out to us.

[...]
###########


Q1: Can anybody decipher what this support guy tries to say?
He even is talking of "margin" :)

Q2: Has my question really deserved such an unqualified answer by such a clueless support?
More...
He is simply saying, that for the assignment obligation to be facilitated, the account needs the full cash requirement excluded of the earned premium.

Forget the word margin, you use cash, switch the word margin for cash. Cash requirement.

It's very clear.

You are wasting your time. Fighting against windmills.
 
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