I wouldn't bother with it anymore because Brownco has been taken over by e-trade and if you think brownco wasn't responsive it will only get worse. The best thing is to switch to a broker that specializes in options OX TOS IB. I have TOS and in a margin account when my cash was negative the computer would allow me to just close positions (which would have let me close the puts BTC)...not quite the same thing but their platform kind of helps you.
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Can a broker restrict you from closing positions?
- Thread starter bangorsky
- Start date
Quote from DonnaV:
I wouldn't bother with it anymore because Brownco has been taken over by e-trade and if you think brownco wasn't responsive it will only get worse. The best thing is to switch to a broker that specializes in options OX TOS IB.
Gawd... you know... you're right. I could tear at Brownco, but what's the point in attacking a guppy that's about to be swallowed by a shark? (No disrespect to sharks intended) But what sort of options commissions can I expect if I go with a specialist? Currently I write about 120 contracts/month @ ~$2/contract. That amounts to ~$240/month. That's about as high as I'm willing to go, making the modest returns that I do. If you know of anything in that range, please post a link!
***another update***
Well, APOL had a nice bounce today, so I sold my 2000 shares for an overall profit of $1000 from this whole sordid mess. So definitely I'm not as furious as I was when I was in the red. But--on principle alone--I feel like I still need some satisfaction. Maybe switching brokers will do it... I dunno. Maybe I'll just demand Brownco to give me free trades for a year. And free pony rides.
Quote from TrendReaction:
If you wrote naked puts then I'm sorry bangorsky I have to disagree, the broker is 100% right.
Trendreaction
Series 7, 55, 63, 65
Series 24 General Principal
Series 4 Option Principal
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NASD Arbitrator
What does this say about NASD arbitration eh?
quote from MTE
Now, the part where you lose me is where you say that by selling naked puts you're borrowing some else's calls and selling them!?
The paragraph in question starts with:
So like selling stock short in essence......
I'm using this as an example, a metaphor in an effort to get across the idea how selling naked puts are accounted for. It is similar to the way selling stock short is accounted for.
None of this makes any sense unless you're familiar with FASB accounting rules.
Apparently its not a very good example. I did forewarn you though and said it would make your head spin.
Jeez.....I'm glad this isn't a discussion on bond accruals and accretions.
Quote from TrendReaction:
quote from MTE
Now, the part where you lose me is where you say that by selling naked puts you're borrowing some else's calls and selling them!?
The paragraph in question starts with:
So like selling stock short in essence......
I'm using this as an example, a metaphor in an effort to get across the idea how selling naked puts are accounted for. It is similar to the way selling stock short is accounted for.
None of this makes any sense unless you're familiar with FASB accounting rules.
Apparently its not a very good example. I did forewarn you though and said it would make your head spin.
Jeez.....I'm glad this isn't a discussion on bond accruals and accretions.
Ok, let's approach this from a different angle.
Let's suppose that you get a margin call, but you're unreachable for a few days while the position keeps going against you. So, what would a broker do in this case, would the broker:
(a) liquidate your position to meet the margin call, or
(b) do nothing and let the margin call get even bigger?
By the way, since DonnaV mentioned other brokers, if you get a margin call at IB then they automatically start liquidating each and every position without any regard to whether a position causing the margin call was covered by some other position, say a calendar spread.
Edit: I just checked with my broker and was told that I would be allowed to buy back the put to meet the margin call. My broker also said that it is an industry standard to allow a client to liquidate the position to meet the margin call.
FYI - A new etrade opened up in Orlando (they moved from another location), I went in there to check on their options platform.
Nobody other than me knew what a spread was. We couldn't get IV info on the options and NBBO had to be figured by hand.
To be fair, the guys in the office weren't very familiar with the options software. But from what I saw, I would be best off staying with TOS.
Nobody other than me knew what a spread was. We couldn't get IV info on the options and NBBO had to be figured by hand.
To be fair, the guys in the office weren't very familiar with the options software. But from what I saw, I would be best off staying with TOS.