MOFO OPEN reamed me again

[Don87109]

Quote from johnnyc:

I'm sure they can see how the position is paired, they would have to in order to determine the amount of cash he can spend vs how much they have to hold out in requirements. I know they do this in effort to reduce risk but they actually created risk in his case. What if the stock had opened 10-15 pts down Monday morning?

Yes that's a problem, but I think that's what most brokers would do.

Here's a related horror story:

http://www.elitetrader.com/vb/showt...6&highlight=google ira exercised&pagenumber=1

 

[johnnyc]

Quote from Don87109:

Yes that's a problem, but I think that's what most brokers would do.

Here's a related horror story:

http://www.elitetrader.com/vb/showt...6&highlight=google ira exercised&pagenumber=1

Yeah, but they have to at least look at the account to see what the positions are. Otherwise they'd be buying back everyone's ITM covered calls on expiration.

I've heard several horror stories like that one. I'd say it's a little different though because in that one it doesn't look like there was a hedge in the account that the broker broke up. They just let that one get exercised for some unknown reason.

 

[sprstpd]

Quote from Don87109:

IMHO your IRA is one of the best places to day trade. No worries about tax reporting, wash sales, etc.

If you trade the same sort of contract in a regular account (for example MSFT) and then you trade that same contract in an IRA, then wash sales can be created due to this activity (across accounts).

 

[Don87109]

Quote from sprstpd:

If you trade the same sort of contract in a regular account (for example MSFT) and then you trade that same contract in an IRA, then wash sales can be created due to this activity (across accounts).

Yup, and I think tax straddles can also result.