My "spies" tend to agree with Mav on this...upwards of $2million most likely. To give the "hedge" funds the ability to cross margin is one thing...heaven forbid giving the "masses" that same consideration. Heck, one would have to go to Bright Trading or Vtrader for that same edge...LOL. A question for Mav...do you think the wording in the example I posted above with the "buying of puts mixed with long stock" as a requirement? No long stock/short call margin extension? That would be ridiculous, but who knows? Don
This should mean less margin interest charges, right? I mean, in the example below the guy can not only buy several 100's more shares of IBM if he wants, but also with no margin interest charges. If this is correct, then I wonder if the brokerages will try to put the kibosh on the whole thing.
The problem that I see (and it may just be a bad example above) is that they say "Long stock, and Long puts"....which is something that our trades wouldn't want to do (options are "meant to be sold" LOL). Long stock vs. short stock (collecting interest on the short stock) makes much more sense than buying "insurance" on some single stock position. But, who knows, some in the general public will fall for anything....not the "ET'ers" though, right? Don
It's very possible the portfolio margin will have two versions. One for large accounts (million or more or some large number) and one for the smaller guy that will only allow him to buy long puts with long stock. Guys, I'm telling you right now, you are not going to get the same benefits with retail portfolio margin as you will with professional haircuts. It's a freaking nightmare for even a prop firm to manage and it takes very savy and very experienced risk managers to monitor it. No way the E-Trade's and Ameri-trade's of the world are going to allow this. Sorry, retail guy loses again. And Don, I love to how this short option/long option debate with you. LOL. But the expectancy is the SAME per strike whether you buy it or sell it over a long enough series.
LOL...I just like to hear the "tick tick tick" of money coming into the account over the weekend, than money coming out... I guess I'm just old fashioned...love that time decay. Don