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I'm the log scale on that y axis
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Nov 22, 2022 23:21
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| # ? Apr 25, 2024 10:37 |
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I’ve used TDA for over 2 years now. I still hate Thinkorswim desktop. But the TOSmobile app (at least in iOS) is incredibly good, both on phone and tablet. One thing I will mention is TDA has incredible portfolio margin. They have a few house rules that are generally non-intrusive on top of the basic FINRA rules. I am definitely enjoying earning 4% annualized on 8 week tbills, which are basically like-cash in terms of collateral for selling options (99% margin). Nice to earn yield on cash that would otherwise be sitting there. TLDR: TDA is amazing, desktop tos sucks, mobile tos is great.
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Nov 23, 2022 00:40
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Pastrami posted:I am definitely enjoying earning 4% annualized on 8 week tbills, which are basically like-cash in terms of collateral for selling options (99% margin). Nice to earn yield on cash that would otherwise be sitting there.
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Nov 23, 2022 03:18
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DoubleT2172 posted:Could you expound on this? I have cash in my TDA account for selling puts that I'd like to put to use like this You can go and place a non competitive bid for tbills (4 and 8 week bills are auctioned weekly) on the tda website. Let’s say you buy $100,000 worth. Your buying power from the $100,000 cash was, well, $100,000. The buying power from the equivalent in tbills will be $99,000. Did this answer your question? Feel free to msg me on discord if you want
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Nov 24, 2022 03:15
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Pastrami posted:You can go and place a non competitive bid for tbills (4 and 8 week bills are auctioned weekly) on the tda website. Let’s say you buy $100,000 worth. Your buying power from the $100,000 cash was, well, $100,000. The buying power from the equivalent in tbills will be $99,000. Ok simple last question. Let's say you did that, so you can sell to open 3x SPY 330P with that buying power right?. When those are opened are you on margin or is it only of the puts are exercised? I ask because margin at TDA is like +-12% so you'd be losing 8% annualized if margin starts on open and not exercise
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Nov 24, 2022 04:30
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It's confusing because "margin" refers to like three separate but similar things, but so long as you aren't running a negative cash balance you won't be charged margin interest. In other words, in the example you use, if you have a $100k account that a) bought $100k t-bills and then b) wrote SPY puts expiring in a month, there wouldn't be any margin interest charged to you because there's cash sitting in the account (i.e. the premium from those puts you sold). If those puts are later exercised against you, you would at that point be sitting on a bunch of t-bills, a bunch of SPY, and have negative cash so you would be charged margin interest then.
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Nov 24, 2022 14:44
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Agree with Agronox (thank you!). The way I think about is, when you sell options (to open, aka “write”) your broker is RESERVING buying power equal to a certain % of notional value of the underlying shares (minus premium received). You are not charged interest on this buying power that is reserved. The way you get charged interest is when you use $ to buy something that costs more than your actual cash balance. Then you are actually getting a loan from your broker, and they will charge you interest. Like Agronox said, if you are for example assigned on short puts, this is one way you can end up paying margin interest. I often will sell out of the underlying asap in that case. Or if you want to hold the underlying, time to sell some tbills on the secondary market. Tbill interest <<< td Ameritrade margin rate.
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Nov 25, 2022 00:05
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New thread for this decade is up: https://forums.somethingawful.com/showthread.php?threadid=4018317
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Nov 25, 2022 20:46
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| # ? Apr 25, 2024 10:37 |
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Agronox posted:New thread for this decade is up: https://forums.somethingawful.com/showthread.php?threadid=4018317 Thank you! Closing this thread. Folks, please take discussion over there, and especially provide links or text for other things you'd like to see in its OP.
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Nov 25, 2022 21:04
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