He'll only be allowed to "sell 3 or so [options] at once" on a $50k account?!? That's the most ridiculous thing I've read on ET today, which is saying a lot. You have absolutely no idea what you're talking about, thus explaining the draconian trading restrictions your broker had placed on your account. Obviously, it was for your own protection and you might want to consider sending him some flowers.
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Selling puts
- Thread starter NasdaqTrader
- Start date
He'll only be allowed to "sell 3 or so [options] at once" on a $50k account?!? That's the most ridiculous thing I've read on ET today, which is saying a lot. You have absolutely no idea what you're talking about, thus explaining the draconian trading restrictions your broker had placed on your account. Obviously, it was for your own protection and you might want to consider sending him some flowers.
Quote from SumJurk:
No broker in his right mind would let someone with $50,000 in his account sell 125 puts.
More likely, you'll be allowed to sell 3 or so at once.
When I sold options years ago, my broker required $15,000 per option in the account. It may have changed a little since then, but don't plan on doing 125.
Yeah, that's hilarious. "Changed a little since then"? You bet it has. I guess there's probably still a broker or two out there doing that, just as some people use tomorrow's paper on the front step for stock quotes. Like someone said earlier, it is a free country, and it's your money...at least it WAS your money.
Quote from Hello_Dollars:
He'll only be allowed to "sell 3 or so [options] at once" on a $50k account?!? That's the most ridiculous thing I've read on ET today, which is saying a lot. You have absolutely no idea what you're talking about, thus explaining the draconian trading restrictions your broker had placed on your account. Obviously, it was for your own protection and you might want to consider sending him some flowers.
I was probably trading options before you were born ass****.
It was just after the crash of 1987, and so many brokers got burned from that, you had to deposit $50,000 just to open an account. (if you planned on going naked.)
Things may have slacked off a little since then, but if I was a broker, and you deposited $50,000 and wanted to sell 125 puts, I'd say no way in hell.
Quote from SumJurk:
I was probably trading options before you were born ass****.
It was just after the crash of 1987, and so many brokers got burned from that, you had to deposit $50,000 just to open an account. (if you planned on going naked.)
Things may have slacked off a little since then, but if I was a broker, and you deposited $50,000 and wanted to sell 125 puts, I'd say no way in hell.
Take your hand off your c*ck for a second... You now stipulate "after the crash" to make your argument, while you're still talking directly out of your ass.
The fact remains that many brokers use exch min margins which have been set at 20% for retail for ages.
$50k haircut for a 3lot, LOL.
riskarb
Quote from riskarb:
Take your hand off your c*ck for a second... You now stipulate "after the crash" to make your argument, while you're still talking directly out of your ass.
The fact remains that many brokers use exch min margins which have been set at 20% for retail for ages.
$50k haircut for a 3lot, LOL.
riskarb
Well, I see there's more than one dumb*** lurking on the boards.
Because, if you take on 125 naked puts with $50,000 in your account, that's exactly what you are, a dumb***.
Why would a broker allow only 3 put contracts on a 20 strike to be written with $50k in the account,when that is enough to cover the purchase of 2500 shares(25 contracts)?If i was purchasing $50k worth of long stock,they wouldn't care;so why would they care if i want to write 25 contracts.They're not being exposed to any risk whatsoever on 25 contracts.
Quote from SumJurk:
Well, I see there's more than one dumb*** lurking on the boards.
Because, if you take on 125 naked puts with $50,000 in your account, that's exactly what you are, a dumb***.
Your handle is apt... you'd get some respect were you a newbie, but the fact that you've been trading options "since before you(HelloDollars) were born" speaks volumes of your lack of market-knowledge and intelligence.
Lurking? Look at the post count, you illiterate monkey.
riskarb
Quote from SumJurk:
Well, I see there's more than one dumb*** lurking on the boards.
And, if you take on 125 naked puts with $50,000 in your account, that's exactly what you are, a dumb***.
Do you have any idea that the person you are referring to treats $50k as a rounding error? Why do I have this nagging suspicion that the words "stupid" and "pennyless" will be featured prominently in paragraph 1 of your undoubtedly brief epitaph?
(By the way, since the obvious escapes you, that was rhetorical.)