stock yield enhancement program

[ScroogeMcDuck]

does the stock yield enhancement program affect margin requirements, because it only applies to "fully paid" stock?

 

[qwerty11]

no

 

[FSU]

does the stock yield enhancement program affect margin requirements, because it only applies to "fully paid" stock?

I know this isn't what you asked, but,

Generally you will be better off doing a synthetic with options vs buying stock and participating in a stock yield enhancement program. To do a synthetic, you buy a call and sell a put of the same strike. This way the full "interest" of a hard to borrow stock is "written in" the price of the synthetic.

 

[john7722]

Could someone elaborate on this? What kind of interest could you earn doing a synthetic ?
I am thinking of doing a SYEP with IBKR
Thank you

 

[qwerty11]

With a synthetic you'll just get the market interest (if you execute well). Of course you cannot be sure that the market is willing to factor in possible high lending rates (that you might expect) for the near future...