Broker silently changed the conditions...

ETJ said:
TD making a change would end up with more people griping. Possibility the OP is living under a release restriction which would have affected the account(s) and not applied firm-wide.
More...

Oh, he's operating under a release restriction alright... from the mental asylum.
 
ondafringe said:
If so, then the OP's example of strike: 4 and premium 3.80 would mean that, at Tasty Trade, he would, in fact, only need $20 in his cash account to execute that trade. Right?

.
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No. Because the premium paid is "unsettled" until the next day. This is an SEC rule.
T +1. Even though it shows up right away, technically those funds are not in your account.

Oh, and before I logged on I see that Earth-Imperator started a new thread which he now includes T +1... which he learned from MY post in this thread. Never a mention of T+1 until I said it.
vanzandt said:
Well... tell the "options expert" thats because options settle T +1
Of course he has to wait until the next f'ing day for the funds to clear.

So yes... after he makes the trade, $400 of his actual cash is locked up until the next f'ing day.

Dude... he is a rookie.
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Looks like our little know-it-all "option expert" just got schooled by The Great and all Knowing VZ.

In his new thread he even post a picture... obviously VZ sent him down a new rabbit-hole. >>> You're welcome.


>>>>AND WITH THAT SAID--- THE FACT THAT HE NEVER KNEW ABOUT T+1 SETTLEMENT RULES<<<<​


I strongly suspect after reading his subsequent posts about how they wouldn't let him open an overnight position and that everything changed out of the blue...

Stay with me now because this gets a little complicated....

My guess is probably the day before he opened and closed a position using unsettled funds and TastyTrade or whoever is handling his $500 account put THE OTHER SEC RESTRICTION on his account he obviously doesn't know about.

This idiot... not knowing about the T+1 incurred his 3rd good faith violation.

Prior to that, you can open up a position with unsettled funds and hold overnight... BUT... 3 good faith violations and the SEC Reg T requires the broker to restrict the account to purely "settled" funds for the next 90 days. IE, he can no longer open an overnight position after he round-tripped one that day with settled funds.

Our idiot is in the penalty box for the next 90 days.

"But it's a bug in their software!"

No... it's "you're a f'ing idiot that thinks you know everything" and you're too f'ing stupid to not listen to people that offer you explanations that YOU solicited.
 
If so, then the OP's example of strike: 4 and premium 3.80 would mean that, at Tasty Trade, he would, in fact, only need $20 in his cash account to execute that trade. Right?
More...

vanzandt said:
No. Because the premium paid is "unsettled" until the next day. This is an SEC rule.
T +1. Even though it shows up right away, technically those funds are not in your account.
More...

Then how can Tasty Trade clearly state: The premium received from the sale of the put can be applied to the initial requirement.
 
@vanzandt, you liar! First you in length did not believe the "requirement = strike - premium" argument of mine,
but now you have given it up and wrongly think that there instead was a "good faith violation" by using unsettled cash.
You loser, you are all wrong b/c if that were the case then the support would have told it to me.

Of course there is another possibility: since TDA is in the midst of a transition to become part of the Schwab company, then maybe something went wrong during that transition process. Just speculating.

On the said day (last Thursday) I experienced 2 glitches: UnsettledCash went inexplainable to almost twice the normal value (and on the next day (ie. T+1 for options) auto-fixed itself as expected), and the second issue being the topic of this thread.
 
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The regulators allow you to set requirements about minimums.
No other TD/Schwab people griping.
These circumstances generally get worse.
 
vanzandt said:
No. Because the premium paid is "unsettled" until the next day. This is an SEC rule.
T +1. Even though it shows up right away, technically those funds are not in your account.

Oh, and before I logged on I see that Earth-Imperator started a new thread which he now includes T +1... which he learned from MY post in this thread. Never a mention of T+1 until I said it.

Looks like our little know-it-all "option expert" just got schooled by The Great and all Knowing VZ.

In his new thread he even post a picture... obviously VZ sent him down a new rabbit-hole. >>> You're welcome.


>>>>AND WITH THAT SAID--- THE FACT THAT HE NEVER KNEW ABOUT T+1 SETTLEMENT RULES<<<<​


I strongly suspect after reading his subsequent posts about how they wouldn't let him open an overnight position and that everything changed out of the blue...

Stay with me now because this gets a little complicated....

My guess is probably the day before he opened and closed a position using unsettled funds and TastyTrade or whoever is handling his $500 account put THE OTHER SEC RESTRICTION on his account he obviously doesn't know about.

This idiot... not knowing about the T+1 incurred his 3rd good faith violation.

Prior to that, you can open up a position with unsettled funds and hold overnight... BUT... 3 good faith violations and the SEC Reg T requires the broker to restrict the account to purely "settled" funds for the next 90 days. IE, he can no longer open an overnight position after he round-tripped one that day with settled funds.

Our idiot is in the penalty box for the next 90 days.

"But it's a bug in their software!"

No... it's "you're a f'ing idiot that thinks you know everything" and you're too f'ing stupid to not listen to people that offer you explanations that YOU solicited.
More...

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