How can I generate the 10 dollar monthly commissions safely without risk

Discussion in 'Interactive Brokers' started by funfunfun111, Oct 7, 2019.

  1. ZBZB

    ZBZB

    Switch to IB lite as I don’t think it has an inactivity fee.
     
    #11     Oct 8, 2019
  2. Basic risk free strategy: cash and carry

    Example: buy one AAPL Oct25'19 (strike =230) conversion combo :
    Buy 100 AAPL
    Sell 1 230 Oct25'19 AAPL call
    Buy 1 230 Oct25'19 AAPL put

    One can roll options at expiry.

    What you get is the Oct25'19 risk free rate minus fees. Depending on your dividend tax treatment, you may have to avoid dividend periods.
     
    #12     Oct 8, 2019
    athlonmank8 likes this.
  3. DaveV

    DaveV

    The problem with this strategy is that the IRS may consider it a wash sale, and the resulting tax liability will be more than the $10 in commission.
     
    #13     Oct 8, 2019
  4. Also don’t all of these strategies involve tying up capital (opportunity cost)? I think I will just eat the 10 dollar commissions till my account is worth 100k and it is waived. And I wouldn’t use IBKR lite since it has inferior execution and margin rates. Thank you.
     
    #14     Oct 8, 2019
  5. dumb
     
    #15     Oct 12, 2019
  6. Trade bonds! I used to do it years ago when I had less than 100k. I usually paid $10.75 in commission in total for a round trip trade and made a tiny 25 cents risk free. lol
    You just have to choose the right bond which takes 5-10 minutes with IB's advanced bond scanner.
     
    #16     Oct 13, 2019