Do we earn interest on the proceeds of a short sale of an option? For example, if I were to sell a Jan11 option for say $500. Do I earn interest on the $500?
Do we earn interest on the proceeds of a short sale of an option? For example, if I were to sell a Jan11 option for say $500. Do I earn interest on the $500?
Fidelity rolls cash from retirement accounts into cash reserves (FDRXX). It's 1 year performance is .77%. For brokerage accounts cash is rolled into FCASH which is paying .07%.
Do we earn interest on the proceeds of a short sale of an option? For example, if I were to sell a Jan11 option for say $500. Do I earn interest on the $500?
depends, is the $500 being used to meet the margin requirement? If so then most likely not. If you had the margin requirement beforehand and the $500 is free cash then you should be earning interest on the proceeds, but probably not a hell of a lot these days
