So, a couple more questions that have come to mind: a) IB will allow the selling of put options, correct? Isn't it kind of odd that Scottrade doesn't allow you to do that? b) Is there a limit from the SEC concerning intra-day options trades, as with intra-day equity trades? I would guess that due to the fluctuation I've seen on some options prices, I probably would not hold them for much longer than a day or two, depending on whether or not the equity price goes in my favor.
Yes, IB allows the selling of puts. In an IRA, IB allows cash-secured puts. I never heard the pattern day-trade rule applied to options. See CBOE on margin rules on options (the rules are supposed to change in 2007).
Linda, you lose all credibility when you can't even match the correct author's name with the title of the book. And you should be embarrassed for recommending that crap $500 book on collars.
Do you have any book recommendations or other areas I could learn? At the moment, I'm going off of what I can find on various websites such as MorningStar.com and Investopedia.com. Both those sites and others have been most helpful to me while learning about the stock market. @Linda: Thanks. I'll check out that book on Amazon. I can't really afford expensive seminars ATM :-|
I don't know if IB still does this, but don't they also have cancellation fees on option trades? 10 cents or something every time, right?
If you cancel an ORDER for an option, IB can access a fee. IB is merely passing on the cost to its custoimers, who cancelled the order in the first place.