I have received an email from OptionsHouse to obtain Large Trader ID from SEC. Did anybody else have receive it or it just a bad joke? By no means I am a larger trader, some butterflies on GOOG, AAPL and SPX (10 lots) can easily exceed their designated threshold of $20 million a day if you count each leg separately. More red tape without thinking through from our dear NSA surveillance?
More bureaucratic stupidity from the SEC. Worthless and useless data is being collected for no valid purpose.
And we have to pay for this nonsense. aaarrrggg aaarrrggg aaarrrggg !
The rule uses the stock price to value option trades and not the option price.
"Ex. Customer trades 200 out of the money Google (GOOG) options at a cost of $20,000 dollars. For Large Trader purposes, the dollar amount traded by the customer is calculated as follows:
Based on this calculation, although the customer only traded $20,000 of options, the trading in the customerâs account(s) met the dollar threshold of the Large Trader Rule."
