Cash proceeds from option writing

I would be interested to see that email. I have been around the block and have never seen a short stock position offset a long stock position when it comes to the balances and how interest is charged and given.

 

You misunderstood. Proceeds from short options, not short stock. I should have included that context I guess, but it's the whole topic of this thread.

The difference with what you said previously was only regarding interest payments on credits.

 

I don't know what you mean. What about them?

 

Won't the margins outweigh the short option position so much that the net interest is -ve

 

no. short positions don't generate margin interest charges...

 

Months later, finally got an answer from IB. I had forgotten the ticket was still open. They said that settled cash from option writing is equivalent to regular cash, basically the same answer I got from Wedbush.