to clarify from your post --
the fee looks at -30% OR +20%
the fee is not charged on Fridays, but on Saturdays, since Friday is a weekly...
I'm not going to leave, but I am going to sell less options so I don't have to pay any fee.
Therefore, this fee is costing them money (less...
But they price an SPX 1800P at $0.50 that expired 6/13/14.
It expired, its price should be 0.00 not 0.50. (SPX is 1935)
After stuff expired Friday, closing some short options, making a deposit, and stopping writing options I should not have had any excess exposure....
I got the notice too.
It seems to be a new thing since the "Stress Test" page did not have a box with the estimated fee in it until 5/31/14....
I wouldn't be surprised considering it is hard to get any decent premium on SPX these days.
I don't like the trade if it is a bunch of naked...
Thanks for letting us know ...
I would rather own 1 put at 560 for 0.45, then 10 at 522.50 for 0.045.
There are not many times that the 522.50 is going to beat the 560.
First, 200 shares will have a lower commission than 125 shares if you are providing liquidity, and I think that is what happened. (ie. one time...
Maybe a better grasp of common sense.
If I were playing a same day option, I would be doing it ATM.
A bit misleading.
But you could buy at 0.02 near the open (so $3 with commission).
And value at close 1.63 (so $162 with commission).
What does it matter if it moved outside and then back inside the 2 SD level.
She would have a margin call way before it even got to 2 SD.
looks like the SEC fee as a percentage of sales.
Could also just buy loads of $0.05 deep OTM $VIX calls to hedge each month, but that would eat into the return a lot.
What are your commissions?
So many small trades the commission might be too much percentage-wise to make winning profitable enough.
It is very liquid 1-3 months out.
Not so liquid as far out as you are talking.
Thanks for the screenshot.
How did you initially know it was looking at 10% down for that margin use calculation?
I speculate IBKR uses 20%...
522.5 >520 which is why closing creates increased margin use.
you have to look at all the positions in the same underlying when determining...
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