13h large trader designation my broker sent me email that i possibly need to file this

Discussion in 'Options' started by darwin666, Feb 25, 2015.


  1. DAVE. thanks for the reply.. so if u see my OP.... all i did was buy 3 cent SPY OTM options which were expiring the same day . and I closed them before EOD...
    so since it was SPY -do you think my 1000 round trip trades make me a Large Trader?
    Also, i dont think I will go over 1000 contracts round trip .-in a day. again.. because of this hassle.
    i cud have easily spread the trade over 2 days instead..
     
    #11     Feb 28, 2015
  2. Joi

    Joi

    Darwin, SPY is not an index and the calls you bought are not index options as described in Dave's response to his broker or in the SEC 13-H FAQ. SPY is the SPDR S&P 500 ETF Trust that tracks the S&P500. To purchase calls on the S&P index, you'd need to buy calls on SPX.
     
    #12     Feb 28, 2015
  3. Joi

    Joi

    As options on ETF's are treated the same as options on equities, you multiply the number of contracts x the contract multiplier x the price of the underlying. So, 1000 SPY calls would be 1000 x 100 x ~$210.85 = $21,085,000.
     
    #13     Feb 28, 2015
  4. dave_s

    dave_s


    The best advice that I can offer is to go through the SEC rules and see how they apply to your specific situation. It may take a little time, but I think it might be worth the investment of effort.
     
    #14     Feb 28, 2015
  5. SPT

    SPT

    is this just for stocks? does this apply to futures?
     
    #15     Mar 2, 2015