Broker silently changed the conditions...

[zdreg]

That would make way too much sense. Much easier to get on the forum and bitch to random strangers (that you have no business with) about how you know everything and the world is conspiring to get you.

Read the book by the founder of Intel, "Only the Paranoid Survive."

 

[spy]

This one's for @Overnight ...

 

[SunTrader]

That would make way too much sense. Much easier to get on the forum and bitch to random strangers (that you have no business with) about how you know everything and the world is conspiring to get you.

No different than at least half of all other ET topics/posts.

 

[zdreg]

No different than at least half of all other ET topics/posts.

Why do you care about the quality of his posts? More important it draws people out and many of the responses are informative+ are adding new info.

 

[ktm]

Baron needs to find a way to hide the threads of people we have on ignore. This idiot starts tons of threads about useless drivel and then argues with a few that don't know about him. It would be one thing if he were actually trying to learn something, but he's not interested and probably not capable.

 

[earth_imperator]

It seems to me you really want to understand the why of this issue. Why not get on the phone with your broker and keep going through their support peeps until you get someone who can answer the question to your satisfaction? Put a nail in it once and for all.

Yes, right. And I'm of course already in contact with them via the ticket system (webmails).
I just asked them a final question and will then summarize here.
Yes, I can confirm that there are also some nullingers among them who have no clue of their job.

 

[earth_imperator]

I wish I could take that type of position with only 20$....

You can! That result comes from the Requirements formula for CashCoveredPut at TradeStation (for Cash Accounts the rightmost column).

 

[zdreg]

Yes, right. And I'm of course already in contact with them via the ticket system (webmails).
I just asked them a final question and will then summarize here.
Yes, I can confirm that there are also some nullingers among them who have no clue of their job.

The key to getting a good answer is to know how to ask a question.

 

[earth_imperator]

The key to getting a good answer is to know how to ask a question.

Right. I try to be very exact, but unfortunately most people don't know even basic maths...
For example in this case the real question is: what is the invested basis amount for PnL% calculation? Ie. the buying power requirement.
Is it the StrikePrice or "StrikePrice minus PremiumReceived"? I think it has to be the second, but almost all people seem to believe it must be the first...

 

[earth_imperator]

Cash Secured Put
Buying power requirement for selling a put in a cash or IRA account
SELLING AN OUTRIGHT PUT REQUIRES THE TOTAL CASH-SECURED AMOUNT
The buying power requirement for a cash-secured put is the (strike price) × (number of contracts) × (option multiplier). The premium received from the sale of the put can be applied to the initial requirement.


However, if you are selling a put in a margin account, then the buying power requirement is different. To learn more about selling an uncovered/naked put in a margin account, please click here.


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

$6,600 - $450 = $6,150 buying power requirement
Disclosure: This is from Tasty Trade which is not my broker.

It seems that earth_imperator is correct. Note we are talking about a cash account, not a margin account.

Thank you! At least one person who understands me