BP

LarryStink

In my experience sitting sidelined has yielded the best results during these periods. Its a coin flip on either side and often times the market just chops in a range until a narrative is found to push the prices out of the range. Until I know when, and why prices are leaving the range, I wait patiently. Leaving a few BP on the table for significantly improving probabilities has paid dividends for me. 

papakong88

This is how to determine how much BP to use if you have Reg T margin. The procedure should be the same for Portfolio margin. You sold naked puts that required a maintenance margin. The minimum maintenance margin requirement is prescribed by the exchange. Your broker may require more. It is calculated by using two formulas and using the higher value. Schwab uses the following formulas for naked puts. MR=100% of option value + 20% of underlying value - OTM amount, or MR =100% of option value + 10% of option exercise price. Leveraged ETFs have higher MR. So you calculate the MRs with your broker’s formulas for your doomsday scenario.  In a doomsday scenario, your MR increases while your collateral decreases in value. So you must have BP on reserve. I sell OTM naked puts. My doomsday is the puts becoming ITM. My analysis shows that I can use up to 60% of my BP to initiate trades. Therefore, figure out how much reserve you need for your doomsday. Nothing else matters.

fomoandyoloandnogrow

Stephen Miran is such a tool. Every meeting: “50BP CUT PLEASE”

Leading_World_3813

You’re absolutely right on the options mechanics. I totally mangled the wording (someone else already called me out for the confusion of this response). What I was comparing was buying cheap OTM calls hoping for the big gap-up runner vs selling puts on the same higher-probability side of the pattern. When I buy those OTM calls the winners can go 5-20× when the gap hits perfectly, but 32-35% of the time nothing happens or it reverses and the call just dies to zero. A couple of those full-premium losses can easily wipe out a bunch of smaller winners and that’s just classic long-option math. When I sell the puts instead, the wins are capped at the credit I took in (I usually keep 80-100% most days), but I managed losses same-day (I’m out at 2-3× credit max, no unlimited nightmare). Capital efficiency on far-OTM 0DTE is nuts (especially naked ones where the BP hit is tiny), though I sell mostly defined-risk puts. The “one bad day wipes many winners” thing is real for the long-gamma side in this short-term setup because of the high failure rate and full premium wipeouts. For disciplined short-put selling it’s the opposite… lots of small wins, rare and contained losses. Anyway, sorry for the sloppy phrasing. Appreciate you calling it out. Keeps me honest 😂

Cardiologist_Actual

Why did I buy $BP calls for eom. Fuck me

TheInkDon1

No problem at all, these are all great questions, and they're hard to figure out on your own. So I think with most brokers you *don't* need a margin account. At least at Schwab I've had it happen to me in IRAs (which can't have leverage). And yes, the broker WILL borrow shares and sell them 'for' you. Same as if you one day said, "I'm gonna short 100 shares of XYZ." (Although I'm not sure you can *do* that in an IRA. So you sold 100 shares that you didn't have, and now you're short the shares. **But you also got paid for them.** And this part is weird because the cash doesn't show up as Buying Power, but it's there. It's just cancelled/balanced out by the short shares. So if you were short 100 shares at $10, there's $1,000 somewhere in your account. So to get un-short, you simply buy 100 shares. And I know it won't look like you can, because you may not have the BP, but you can. Just put in the order and it'll go through. Actually, click on the -100 shares or whatever you have to do, and choose "Close Position" or whatever it is on your platform. The order will go through and you'll no longer be short the shares, and the money you 'had' from their sale is now gone. If the stock stayed right at $10, you'd be flat on the trade: $1,000 worth of shares sold, $1,000 to buy them back. It's when the stock is higher that's the problem, which is usually the case, of course, because that's how you got assigned: the stock moved up through your CC's strike. So if the stock is now at 10.50, that's what you have to pay to buy 100 of them, the market rate. And that's where you lose a little bit: you sold the shares for 10, but have to buy them back at 10.50. But don't forget that you got some Premium when you sold the Call, so that helps offset some of that. And a question you didn't quite ask: a 'good' broker won't sell your LEAPS Call (or shares) to cover the assignment. So you still have the long Call, and if you have the extra $50 in your account to buy the shares back (adding to the 1k you got paid), then just do that. **Never EXERCISE a long Call to acquire shares for an assignment.** If you do you lose all the extrinsic value in it, it just goes away. And to your margin call question: they should give you a day or two to settle up. And they should send you an email, as well as a notification when you open the program/website/app. I've even had them call me the next day. So don't worry about assignments. But it's also good practice to not let them happen. I hope that helps, and others with different experiences can chime in. Take care.

Leading_World_3813

You’re 100% right! A sold option can never make more than 100% of the credit received. When I (and other 0DTE traders) say "200-400% on the runners," we're being sloppy with our terms. We actually mean Return on Buying Power (BP), not return on the premium itself. For far-OTM 0DTE contracts, the broker-required margin (BP) is tiny. Example: Sell a $3.80 put. Credit Received: $380 (100% max profit on premium). Buying Power Used: ~$900 to ~$1,200. Actual Return on Capital at Risk: 380/900 approx 42%, to 380/1,200 approx 31% (These are for runners that only require minimal capital to realize a full return). This sloppy math usually triggers folks who trade longer-dated options where BP is closer to the full notional value. My bad for not being crystal clear earlier. Thanks for calling out the math!

No_Economist3815

Have a feeling AVGO is going to pull an ORCL. Maybe not as sharp a pullback, but it’s going down. Wish I had some BP

Adventurous-Goal478

Honestly I have no idea. I don't think even Exxon or BP will touch the pirated oil we stole yesterday, so, that's not a good play. Maybe the old faithful defense stocks like BA, LMT, RTX?

shearhea74

Not just Tech.. All Big OIl like BP and Exxon sent jobs there from Marketing, real estate and development, Engineering, Tech, Finance, etc... Huge US & UK layoffs to sent to India. After US is their No. 1 market share profits

kweniston

One small cut of 300 BP.

Leading_World_3813

I’m trying to win without ever having a single day wreck my account instead of going for on one lucky gap-up. Here’s the real math over the last year on these exact red-day + green-overnight setups: Selling 8-12 delta puts: \~68% win rate, average +85% on the credit in a few hours (sometimes 200–400% on the big runners).  Buying cheap OTM calls instead: yeah the winners go 5-10-20x… but the losers go to absolute zero 32% of the time. One bad day and you give back 3-6 good ones. I’ve done both. Buying calls is fun when you're right, but selling the puts is boring and prints almost every single time the pattern works (which is most days). I’d rather make 50-150% on my risk 15 times in a row than swing for 1,000% and get smoked twice. Plus: Theta is my friend when I sell (it’s the enemy when I buy 0DTE), no stress about timing the exact bottom, I can close or roll in minutes if it goes against me, Margin/BP usage is way lower. I treat it like an ATM, not a lottery ticket. Buying calls would’ve paid for maybe half… and a few therapy sessions.

TJMBeav

Zero chance of no cut. How many dissents? I guess 3. One wanting a 50 BP cut, the other two do not want any cuts. More than this might get a market reaction

kaapooj

carvana is more valuable than BP $95.98b vs. $93.21b

hgreenblatt

You (and about half the commenters ) sound confused. You sound like you have been approved for Option Selling at your broker. If not you would have to do a CSP. You are not using Margin, you are using Buying Power. If your BP is earning interest in something like Sgov, then you can get 75% face BP on that (maybe less). Margin is for selling stock. Nothing wrong with this but in a down turn you have to have an equal amount of BP available so you do not get closed out. So if the BP was 8k , you need another 8k as backup.

KingHenry13th

What?  Just buy anything in the next bear market. Why meme stocks? Early 2000s tech crash.  Buy tech 2008 bank crash, buy banks BP oil disaster buy BP Covid stay home crash, buy hotels, casinos and cruise lines. The hard part is having the balls and the money to follow thru without worries. 

hgreenblatt

If you want to Buy and Hold then CC work fine. But most of you 100k will be tied up in stocks. If they go up you are a genius , if not ... Csp are the worst. You have to put up the entire price of the stock, some brokers let you earn interest, some do not. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You must get approved for Selling Options, this can be hard at many brokers. Tasty is the only one that gives it to everyone. If you Sell a Put without being approved, then it is a CSP, and none of this applies. You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 99% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

hgreenblatt

You are confused. If you are not approved for Selling Options (you do not say). then even though the account is margin selling a Naked Put must be a CSP. If you are approved for Selling Options, then I am pretty sure it will use buying power (about 8k-10k for a 25 delta), but I have heard Fidelity has a way for you to force it to be a Csp. Anyhow you a throwing away your leverage , and interest. Selling using Buying Power is what you should be doing. The t-bills and Sgov pay interest and can be turned into cash pretty much as soon as sold (Schwab, IB, Tasty). t-bills get 98% face BP, Sgov 70% Bp (sometime 75%). There is no risk. Here was my standard reply. My answer is always the same, get a Margin Account (Schwab , Tasty, IB platform not for me) , you are pissing away your leverage in a Cash Account. If you have the money (25k but 60k better) to trade options (90% of those responding only have 10k or less). You must get approved for Selling Options, this can be hard at many brokers. Tasty is the only one that gives it to everyone. If you Sell a Put without being approved, then it is a CSP, and none of this applies. You can Sell Puts , Calls or Both on Amzn, Appl,Googl, Bidu, Nvda, for 2k-4k Buying Power. If you get Assigned take the loss close out the stock and move on, or ROLL Forward in Time for a CREDIT. Also you can BUY SGOV , get 70% Buying Power on that and interest every month. If you can afford to tie up part of that SGOV cash for 3 months at a time you can get over 98% Face with Treasuries. Selling Treasuries before maturity could cost you a "haircut" , Sgov does not suffer from that. Key:: Always keep 100% of the BP as backup for a Down Move, so if the BP is 10k, keep another 10k as backup. Follow Tasty mechanics , Sell at 45dte, close or roll by 21dte, have a profit target in 50% area. Do not Sell 40 Delta Puts... I rarely do over 20delta, 30delta is ok but you will get tested often. How can this be , everybody on Reddit is wheeling! Try these Tasty vids to see what most Reddit users do not know or worse understand. [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

trustfundkidotaku

But the account registered me using margin though ? Since my funds available for trading only decreased by the BP effect ?

jubilantBeatbox

Whether its implemented or not -- DT is calling for up to 2-3 BP cuts on the fed rate.... and saying he's going to put the person in to do it, by name.

papakong88

If you are selling naked puts, you will use the buying power of your securities as collateral. In terms of buying power, SGOV do not have as much buying power as T-bills or money market funds. SGOV’s BP is 70% of its value while T-bills have 97% and money market funds have 100%. I do not use SGOV. In terms of safety and yield, all three are about the same.

Cautious-Lecture-858

How the hell does Venezuela “disrupts the region”? That country is nothing. This whole Guyana dispute is nothing. Venezuela doesn’t have the resources much les military to enforce anything. It’s a poor decrepit country with ZERO influence in the region. But it has the largest untapped oil reserves on earth. But I’m sure the main reason for every war started by a Republican admin in the last 40 years has nothing to do with that fact. Also the US didn’t get oil concessions from Kuwait?! The Kuwait Oil Company is owned by Chevron. Kuwait oil IS OWNED by the US (and UK’s BP). Jesus Christ. Shut the fuck up.

_icarcus

You didn’t start at $12 though lol you wouldn’t have even had enough BP for the first put without adding the additional $90 on Thursday so we’re already lying

No_Aerie_2717

They have only lost with BP. Amount is not finalized yet.

Financial_Golf_605

33% of all treasury liquidity comes from shell companies in the Cayman Islands buying for spot arbitrage on microscopic BP movements The bond market died in 2008. And then went 6 feet under in 2020 2022 was injecting ketamine into a dead body and everybody was losing their mind

Itistruethough

Imagine thinking yesterdays single Green Day meant recession cancelled after bissent slipped up last week and said “it’s true there are numerous sectors of the economy currently in a recession” on live television. Recession isn’t cancelled until credit default swaps drop by 50BP. They still rose higher yesterday.

papakong88

I sell ICs every day. Hold until it is necessary to roll. Roll when you have a better use of the BP released. Roll when your exit  criteria is met. What is your exit criteria?

oxphatxo

Yes for sure, that’s the biggest risk, I mentioned that already. Gap ups hurt the strategy. Dips are where you want to roll up and out, that’s why it’s smarter to start the trade with deep ITM puts. Soon as you’re leveraged like this, you need to maintain a minimum negative delta ratio to your positive so you don’t risk liquidation, lose EL or BP or get locked out from selling CC’s. So yes, fast upside isn’t your friend. Bearish is fine, sideways is fine, slow bullish fine (just like any CC). You’re getting a stable portfolio but it requires work and constant balancing. In the end, you’re trying to get out between 5-15X. I know that sounds crazy but it’s not at all unreasonable given META is trading at 595 and will likely return to 800 territory with time.

ace_alive

Repsol (Portugal), Odfjell Technology(Norway), Orsted (Denmark) , Aker BP (Norway), Greencoat Renewables Ireland). And an ETF with numerous midstream companies from the USA. My focus is on dividends, although Orsted currently doesn‘t pay any. I have no US stock investments, I concentrate on my home market in Europe.

libranofjoy

Shhh. VG will be no.1 US exporter book it. They will rival Qatar. Flying under the radar. Market got em down coz of BP. They will pay off litigation parking fees. Already profitable and expanding like crazy. Lng supermajeur of the future.

Tall_Science_9178

MIRAN: WOULD VOTE FOR 25-BP CUT IF MY VOTE WERE MARGINAL VOTE Miranda was firmly pro cut. This is softening of pro cut stance. Allows rest of fed board to hold as there is less perceived political pressure to vote for rate cut.

Superb-Strength1348

Maybe no more cuts. Apparently that quarter BP is super important. May also indicate that inflation is absurd since that's all the FED is focused on and not unemployment.

Charming_Catch1982

$PLTR In case you forgot, here's a reminder of what Palantir is capable of -Heineken: "What took us three years before, the team built in just three months" -Citi Wealth: “This process would take 9 days. Now it takes seconds.”Citi has achieved a 90% decrease in time per case and an 80% cut down on handoffs, all while retaining the quality of their work. -General Mills: We’re saving on average about $40,000 a day, which is about $14M ANNUALLY– and it’s really only deployed to part of our network." -Fannie Mae: "It was a mortgage case fraud case... There's a lot of paper--reams of paper. It took our really talented investigators 60 days to detect fraud into these files. It took your technology 10 seconds, like holy cow." -Morson Group: 53% faster in finding x3 candidates. 1hr 8min average per consultant. 129% increase in placements made -Applied Materials: 24-month projects to 6 weeks. "We have big consulting companies coming in. We can do this in 24 months, it's going to be millions of dollars. With Palantir, we solved this in 6 weeks on the pilot just by connecting to those Legacy systems." -Walgreens increased the operational efficiency by 30% -Nebraska Medicine increased patient discharge speed by 2000% paired with a 95% discharge prediction accuracy -AIG reduced a four-week underwriting time to less than one day. -TeleTracking reduced 24-hour manual healthcare process to seconds -Bolt reduced checkout cancellations to 50% -U.S. Department of State can reduce the time it takes to clear candidates to the Foreign Service from 60 days down to 12 -HyperScienceAI and ManifestCyber reduced the FedRamp costs by 10x and its audit time by 94% -Walgreens increased its operational efficiency by 30% BP reduced costs per barrel by 60% Tampa -Hospital improved its nurse staffing ratio attainment by 30% Cleveland Clinic reduced its bed capacity calculation time by 75%, 38 Minute decrease in ER wait time and 40% Reduction in unused orthopaedic OR time -Paraxel reduced the Clinical Submission Readiness Time by 50% Morson group reduced x3 candidate search time by 53% -Airbus accelerated A350 production by 33% -Tyson Foods achieved $200 million in cost savings -@USArmy recovered $2B in unliquidated funds -@DeptVetAffairs saved $92M+ in funds -World Food Programme saved $30M in delivery costs -Jacobs Connect cut power usage by 30% -Panasonic decreased waste by 12% ESI Group sped up ERP harmonization by 70% -Panasonic Energy cut the 3-6 month learning curve down to just a few weeks for veteran technicians -PG&E reduced transformer ignitions by 65% -Eaton boosted productivity by 25%

musiro77

Your math is indeed correct, no my account didn’t have the capital to handle 700 shares at once that’s why I tried to exercise and sell once at a time it didn’t work at first I tried again and again but then eventually it went though for 1 contract but after that it didn’t work again despite selling all my 100 SPY shares AH and even all other stocks to free up BP. Opportunity Costs of 2.4K now as SPY keeps rocketing AH. Anything I can do or do I have to accept it?

No_Economist3815

Everything? Get back out there, champ. Put that $10.69 to work. You still have BP to lose!

No_Aerie_2717

I strongly believe that this will be multibagger in future. EU banned LNG imports from Russia. [https://www.consilium.europa.eu/en/press/press-releases/2025/10/20/council-agrees-its-position-on-rules-to-phase-out-russian-gas-imports-under-repowereu/](https://www.consilium.europa.eu/en/press/press-releases/2025/10/20/council-agrees-its-position-on-rules-to-phase-out-russian-gas-imports-under-repowereu/) REPowerEU is increasing LNG terminals and gas network. [https://commission.europa.eu/topics/energy/repowereu\_en](https://commission.europa.eu/topics/energy/repowereu_en) VG is making deals (long contracts)with EU countries every week/month. Ukraine buy more US LNG through Greece (VG is the supplier). New Japan contract was announced this week. Trump is trying to push LNG exports higher. Trump has praised CEO and Venture Global in live feed. DOE allows expansions. BP loss is just temporary. Business continues. Analysts are still trying to pump the stock over 11-15 USD range knowing BP case.

PutParadise

Over the long run, I would be getting around $52 per day on average if I was only using $24,000 BP, which equates to around $13,138 per year or \~55% ARR. In 2025, it's been much higher but this year has been unusual (and we're not done yet)

PutParadise

Agreed, it cuts down on commissions and fees, and is better for taxes. SPX is cash settled also so it has no assignment risk. I typically tell people to start with SPY ($5) and scale up to SPX ($25) as your account size / BP grows

papakong88

You have 24K of BP committed to 14 spreads. What is your average income per day?

VigilanteWit

I have $600 in BP i just need to turn it into 50k rq. Hopefully the discord bros do me right

Zealousideal-Pen-634

If results are positive They will be sold to a BP in a matter of a few months or will partner with a large bio company. 

joeyoung043

Why PFE though? Most dead BP among all, and regarded enough to spend $10 Billion on Metsera.

A_Time1980

Impressive BP!

hgreenblatt

You sound lost. If you keep your cash in treasuries earning interest, you can Sell a Spy 30delta 19Dec 668 strike. The broker will deduct about 10k from your BP rather than 66,800. You still have it covered, it is just better leverage. Look at the vids.

mikeytho1

Yesterday, I used all my BP and didn't want to wait until tomorrow for my funds to settle, so I did an instant deposit of 3k on Robinhood. Can you guess how much money I lost today?

hgreenblatt

I am not following why you would do this as a Csp, which to me implies a Cash account or a Margin with Selling Options disabled. You have the Cash, just buy treasuries or Sgov and sell the Puts on buying Power. Use your actual Net Liq to temper how many you do. If you get a big downturn, cash out the treasuries and own the Spy. There is no interest in doing this at a Real Broker. Treasuries give about 98% face BP , while Sgov give 70-75% face BP, all while earning interest in a standard Margin account no PM required. This is the way it works at IB, Schwab, Tasty (a boutique more for options ). If you are unsure of Buying Power with your new wealth, then watch these Tasty vids. Buying Power [https://ontt.tv/3jAf4Ba](https://ontt.tv/3jAf4Ba) Buying Power Factors Oct 28, 2020 [https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020](https://www.tastylive.com/shows/tasty-extras/episodes/a-refresher-on-bpr-06-29-2020) [https://ontt.tv/2CLbOjn](https://ontt.tv/2CLbOjn) What Affects Buying Power? Nov 14, 2019 [https://ontt.tv/JeGVN](https://ontt.tv/JeGVN) Short Puts vs Covered Calls vs Poor Mans Covered Call Jul 9,2024

907cconnak

Wish i had BP to play the range

mrtrimbl

with the weekend announcements vte reduction (clots) and its anti inflammatory properties which acca is now focusing on, i think they have the pcsk9 competition beat as they dont have these differentiators and patients need to fast and its more expensive , BP fired their best shot at the weekend and missed

Delicious-Status9043

Online? Like CheaperThanDirt and the like? Or local? IHDK because I haven’t bought any after they jacked up their price. The GD local shops here buy out Walmart and Dicks and resell it at least a 50% markup, so no price reduction here… Hell, pre Covid people on all sides of me were shooting off a couple hundred rounds most days of the week. (I am surrounded by a couple Staties, the former Sheriff, a local pd, and BP) Now, it’s just a couple dozen rounds a few times a month.

farcat

They weren't far otm last week lmao, but yeah I suppose they are now. Blew all my BP because im dumb, I am learning lessons from that now. I think ill need to sell what's still in the green to rotate my losers into a new position but then I miss the upside on those when we inevitably recover. I kept my head in the sand this week and bled a lot, "diamond hands" bs, and if next week drops more then ill be out of choices and will need to sell to preserve my starting capital. Thank you for the advice and good luck to you and any positions youre holding

Sick0h

Thank god I used all my BP at open to only lose 20%. I would’ve lost way more getting faked out this afternooon

notreallydeep

BP struggled *against* the rest. COP struggled *with* the rest. Almost every US oil producer is down YTD and there is one variable that connects them all (please don't even think of mentioning refiners as a counterpoint, you already mentioned the crack spread while COP doesn't refine shit). You can ignore the obvious if you want. That's my last comment on this as it's entirely pointless.

RoyaleWCheese_OK

Because they overstretched. Stocks don't just trade during earnings... look at their fundamentals. BP struggled because their clown of a CEO doubled down on renewables. Now the new guy has got it back on track, their stock is climbing again.

MaliciousssMoose

I noticed some as low as $5 last week when I was picking up zyns at a BP. I normally fill at Costco and I will pay attention next time I do now but I assume that people waiting in that line are filling all the way up.

papakong88

OP is trading 500 to 1000 contracts a week. Assuming OP is trading more than 40 contracts a time , the collateral will be the same. Let’s look at a 0.30 delta put for Nov. 7. The NDX 25400 put can be sold for 85, BP required is 362 K. The QQQ 618 put can be sold for 2.15, BP required is 8.8 K. Note that NDX is 41 times QQQ, so if we sell 41 QQQ puts, we can get 88, and the BP required is 361 K.

Infinite_Imagination

Same reason it goes up every summer except the summer of the BP oil spill.

SunGodApollo23

What's non-margin BP compared to straight cash?

c7015

Copied but a nice summary I read -Heineken: "What took us three years before, the team built in just three months" -Citi Wealth: “This process would take 9 days. Now it takes seconds.”Citi has achieved a 90% decrease in time per case and an 80% cut down on handoffs, all while retaining the quality of their work. -General Mills: We’re saving on average about $40,000 a day, which is about $14M ANNUALLY– and it’s really only deployed to part of our network." -Fannie Mae: "It was a mortgage case fraud case... There's a lot of paper--reams of paper. It took our really talented investigators 60 days to detect fraud into these files. It took your technology 10 seconds, like holy cow." -Morson Group: 53% faster in finding x3 candidates. 1hr 8min average per consultant. 129% increase in placements made -Applied Materials: 24-month projects to 6 weeks. "We have big consulting companies coming in. We can do this in 24 months, it's going to be millions of dollars. With Palantir, we solved this in 6 weeks on the pilot just by connecting to those Legacy systems." -Walgreens increased the operational efficiency by 30% -Nebraska Medicine increased patient discharge speed by 2000% paired with a 95% discharge prediction accuracy -AIG reduced a four-week underwriting time to less than one day. -TeleTracking reduced 24-hour manual healthcare process to seconds -Bolt reduced checkout cancellations to 50% -U.S. Department of State can reduce the time it takes to clear candidates to the Foreign Service from 60 days down to 12 -HyperScienceAI and ManifestCyber reduced the FedRamp costs by 10x and its audit time by 94% -Walgreens increased its operational efficiency by 30% BP reduced costs per barrel by 60% Tampa -Hospital improved its nurse staffing ratio attainment by 30% Cleveland Clinic reduced its bed capacity calculation time by 75%, 38 Minute decrease in ER wait time and 40% Reduction in unused orthopaedic OR time -Paraxel reduced the Clinical Submission Readiness Time by 50% Morson group reduced x3 candidate search time by 53% -Airbus accelerated A350 production by 33% -Tyson Foods achieved $200 million in cost savings -@USArmy recovered $2B in unliquidated funds -@DeptVetAffairs saved $92M+ in funds -World Food Programme saved $30M in delivery costs -Jacobs Connect cut power usage by 30% -Panasonic decreased waste by 12% ESI Group sped up ERP harmonization by 70% -Panasonic Energy cut the 3-6 month learning curve down to just a few weeks for veteran technicians -PG&E reduced transformer ignitions by 65% -Eaton boosted productivity by 25%

Notmikeyouidiot

Got all my BP.... do we wait tonight out....?? full send..? im feeling extra regarded

GeneralSavings9373

I tried to "recession-proof" over the past few weeks, focusing on basic consumer goods and stores (dollar general, cvs, proctor-gamble) and power/water companies (CVX, XO, BP)

Recent_Register_2952

fr dude wtf how is my port bleeding and my margin BP up exponentially?

Charming_Catch1982

$PLTR In case you forgot, here's a reminder of what Palantir is capable of -Heineken: "What took us three years before, the team built in just three months" -Citi Wealth: “This process would take 9 days. Now it takes seconds.”Citi has achieved a 90% decrease in time per case and an 80% cut down on handoffs, all while retaining the quality of their work. -General Mills: We’re saving on average about $40,000 a day, which is about $14M ANNUALLY– and it’s really only deployed to part of our network." -Fannie Mae: "It was a mortgage case fraud case... There's a lot of paper--reams of paper. It took our really talented investigators 60 days to detect fraud into these files. It took your technology 10 seconds, like holy cow." -Morson Group: 53% faster in finding x3 candidates. 1hr 8min average per consultant. 129% increase in placements made -Applied Materials: 24-month projects to 6 weeks. "We have big consulting companies coming in. We can do this in 24 months, it's going to be millions of dollars. With Palantir, we solved this in 6 weeks on the pilot just by connecting to those Legacy systems." -Walgreens increased the operational efficiency by 30% -Nebraska Medicine increased patient discharge speed by 2000% paired with a 95% discharge prediction accuracy -AIG reduced a four-week underwriting time to less than one day. -TeleTracking reduced 24-hour manual healthcare process to seconds -Bolt reduced checkout cancellations to 50% -U.S. Department of State can reduce the time it takes to clear candidates to the Foreign Service from 60 days down to 12 -HyperScienceAI and ManifestCyber reduced the FedRamp costs by 10x and its audit time by 94% -Walgreens increased its operational efficiency by 30% BP reduced costs per barrel by 60% Tampa -Hospital improved its nurse staffing ratio attainment by 30% Cleveland Clinic reduced its bed capacity calculation time by 75%, 38 Minute decrease in ER wait time and 40% Reduction in unused orthopaedic OR time -Paraxel reduced the Clinical Submission Readiness Time by 50% Morson group reduced x3 candidate search time by 53% -Airbus accelerated A350 production by 33% -Tyson Foods achieved $200 million in cost savings -@USArmy recovered $2B in unliquidated funds -@DeptVetAffairs saved $92M+ in funds -World Food Programme saved $30M in delivery costs -Jacobs Connect cut power usage by 30% -Panasonic decreased waste by 12% ESI Group sped up ERP harmonization by 70% -Panasonic Energy cut the 3-6 month learning curve down to just a few weeks for veteran technicians -PG&E reduced transformer ignitions by 65% -Eaton boosted productivity by 25%

Charming_Catch1982

$PLTR In case you forgot, here's a reminder of what Palantir is capable of -Heineken: "What took us three years before, the team built in just three months" -Citi Wealth: “This process would take 9 days. Now it takes seconds.”Citi has achieved a 90% decrease in time per case and an 80% cut down on handoffs, all while retaining the quality of their work. -General Mills: We’re saving on average about $40,000 a day, which is about $14M ANNUALLY– and it’s really only deployed to part of our network." -Fannie Mae: "It was a mortgage case fraud case... There's a lot of paper--reams of paper. It took our really talented investigators 60 days to detect fraud into these files. It took your technology 10 seconds, like holy cow." -Morson Group: 53% faster in finding x3 candidates. 1hr 8min average per consultant. 129% increase in placements made -Applied Materials: 24-month projects to 6 weeks. "We have big consulting companies coming in. We can do this in 24 months, it's going to be millions of dollars. With Palantir, we solved this in 6 weeks on the pilot just by connecting to those Legacy systems." -Walgreens increased the operational efficiency by 30% -Nebraska Medicine increased patient discharge speed by 2000% paired with a 95% discharge prediction accuracy -AIG reduced a four-week underwriting time to less than one day. -TeleTracking reduced 24-hour manual healthcare process to seconds -Bolt reduced checkout cancellations to 50% -U.S. Department of State can reduce the time it takes to clear candidates to the Foreign Service from 60 days down to 12 -HyperScienceAI and ManifestCyber reduced the FedRamp costs by 10x and its audit time by 94% -Walgreens increased its operational efficiency by 30% BP reduced costs per barrel by 60% Tampa -Hospital improved its nurse staffing ratio attainment by 30% Cleveland Clinic reduced its bed capacity calculation time by 75%, 38 Minute decrease in ER wait time and 40% Reduction in unused orthopaedic OR time -Paraxel reduced the Clinical Submission Readiness Time by 50% Morson group reduced x3 candidate search time by 53% -Airbus accelerated A350 production by 33% -Tyson Foods achieved $200 million in cost savings -@USArmy recovered $2B in unliquidated funds -@DeptVetAffairs saved $92M+ in funds -World Food Programme saved $30M in delivery costs -Jacobs Connect cut power usage by 30% -Panasonic decreased waste by 12% ESI Group sped up ERP harmonization by 70% -Panasonic Energy cut the 3-6 month learning curve down to just a few weeks for veteran technicians -PG&E reduced transformer ignitions by 65% -Eaton boosted productivity by 25%

SusanMayer123

Reminder: -Heineken: "What took us three years before, the team built in just three months" -Citi Wealth: “This process would take 9 days. Now it takes seconds.”Citi has achieved a 90% decrease in time per case and an 80% cut down on handoffs, all while retaining the quality of their work. -General Mills: We’re saving on average about $40,000 a day, which is about $14M ANNUALLY– and it’s really only deployed to part of our network." -Fannie Mae: "It was a mortgage case fraud case... There's a lot of paper--reams of paper. It took our really talented investigators 60 days to detect fraud into these files. It took your technology 10 seconds, like holy cow." -Morson Group: 53% faster in finding x3 candidates. 1hr 8min average per consultant. 129% increase in placements made -Applied Materials: 24-month projects to 6 weeks. "We have big consulting companies coming in. We can do this in 24 months, it's going to be millions of dollars. With Palantir, we solved this in 6 weeks on the pilot just by connecting to those Legacy systems." -Walgreens increased the operational efficiency by 30% -Nebraska Medicine increased patient discharge speed by 2000% paired with a 95% discharge prediction accuracy -AIG reduced a four-week underwriting time to less than one day. -TeleTracking reduced 24-hour manual healthcare process to seconds -Bolt reduced checkout cancellations to 50% -U.S. Department of State can reduce the time it takes to clear candidates to the Foreign Service from 60 days down to 12 -HyperScienceAI and ManifestCyber reduced the FedRamp costs by 10x and its audit time by 94% -Walgreens increased its operational efficiency by 30% BP reduced costs per barrel by 60% Tampa -Hospital improved its nurse staffing ratio attainment by 30% Cleveland Clinic reduced its bed capacity calculation time by 75%, 38 Minute decrease in ER wait time and 40% Reduction in unused orthopaedic OR time -Paraxel reduced the Clinical Submission Readiness Time by 50% Morson group reduced x3 candidate search time by 53% -Airbus accelerated A350 production by 33% -Tyson Foods achieved $200 million in cost savings -@USArmy recovered $2B in unliquidated funds -@DeptVetAffairs saved $92M+ in funds -World Food Programme saved $30M in delivery costs -Jacobs Connect cut power usage by 30% -Panasonic decreased waste by 12% ESI Group sped up ERP harmonization by 70% -Panasonic Energy cut the 3-6 month learning curve down to just a few weeks for veteran technicians -PG&E reduced transformer ignitions by 65% -Eaton boosted productivity by 25%

SusanMayer123

Reminder: -Heineken: "What took us three years before, the team built in just three months" -Citi Wealth: “This process would take 9 days. Now it takes seconds.”Citi has achieved a 90% decrease in time per case and an 80% cut down on handoffs, all while retaining the quality of their work. -General Mills: We’re saving on average about $40,000 a day, which is about $14M ANNUALLY– and it’s really only deployed to part of our network." -Fannie Mae: "It was a mortgage case fraud case... There's a lot of paper--reams of paper. It took our really talented investigators 60 days to detect fraud into these files. It took your technology 10 seconds, like holy cow." -Morson Group: 53% faster in finding x3 candidates. 1hr 8min average per consultant. 129% increase in placements made -Applied Materials: 24-month projects to 6 weeks. "We have big consulting companies coming in. We can do this in 24 months, it's going to be millions of dollars. With Palantir, we solved this in 6 weeks on the pilot just by connecting to those Legacy systems." -Walgreens increased the operational efficiency by 30% -Nebraska Medicine increased patient discharge speed by 2000% paired with a 95% discharge prediction accuracy -AIG reduced a four-week underwriting time to less than one day. -TeleTracking reduced 24-hour manual healthcare process to seconds -Bolt reduced checkout cancellations to 50% -U.S. Department of State can reduce the time it takes to clear candidates to the Foreign Service from 60 days down to 12 -HyperScienceAI and ManifestCyber reduced the FedRamp costs by 10x and its audit time by 94% -Walgreens increased its operational efficiency by 30% BP reduced costs per barrel by 60% Tampa -Hospital improved its nurse staffing ratio attainment by 30% Cleveland Clinic reduced its bed capacity calculation time by 75%, 38 Minute decrease in ER wait time and 40% Reduction in unused orthopaedic OR time -Paraxel reduced the Clinical Submission Readiness Time by 50% Morson group reduced x3 candidate search time by 53% -Airbus accelerated A350 production by 33% -Tyson Foods achieved $200 million in cost savings -@USArmy recovered $2B in unliquidated funds -@DeptVetAffairs saved $92M+ in funds -World Food Programme saved $30M in delivery costs -Jacobs Connect cut power usage by 30% -Panasonic decreased waste by 12% ESI Group sped up ERP harmonization by 70% -Panasonic Energy cut the 3-6 month learning curve down to just a few weeks for veteran technicians -PG&E reduced transformer ignitions by 65% -Eaton boosted productivity by 25%

Common_Badger329

Because there is no margin call. Your account got designated as a PDT and you’re required to have $25,000 in BP to access margin funds. All that means is you’re below the minimum and can’t access margin until you’re at or above it.

papakong88

I don’t keep track of my win rate because I don’t know how to determine a “win”. I had 3 potential max loss events this year but I am able to manage them resulting in a small loss only. The details are in my posts. For risk management, I put aside enough buying power for 2 ICs for every IC that I sold. This will reduce the rate of return of my capital. I can sell the IC for 1.00 to 2.00. Assuming I sell them for 1.00, then I can double my money in 100 days. If I set aside BP for 2 IC, then I can double my money in 300 days. There are about 250 trading days in a year - the rate of return is still very high even accounting for putting money aside. The reserve money is not wasted. Everyday when the market stabilizes, I can use them to sell junk ICs that are very far OTM for 50 cents or less. It is possible to get 2.00 a day with 300 in BP.. The reserve money is an important tool in getting out of trouble. Details are in my posts. 

One_Sir_Rihu

People are taken by the spy narrative. Maybe dont elect fascist who are gonna use new revolutionnary technology. Palantir was for ai regulation all the way during biden admin, but like every company if the people elect fascist they will sell their product to them. Same as volkswagen, or msft, etc. Tbh they have a litteral ai operating platform that delivers actual efficiency in all manners of domain like healthcare and manufacturing. Up to 30% in efficiency gains in a lot of domain (10% for energy company rn with actual BP numbers)...that's steam machine revolutionnary efficiency right there. Also the biggest lie is people say their software spy...no it doesnt, the customee analyse available data that they own...and guess what, the US government can legally acess every cloud servers owned by US entity. If a customer want to not get his data uncovered by the US they need to host their data on a separate cloud structure then aws, oracle, etc. Anyway, I believe they will be the next msft in a decade or two amd their product will hopefully be used by democratic customers...if the american people wake the f up from fascism. That technology is not gonna go away if the name palantir stop existing, its only gonna be duplicated in other software if palantir lose their patent. So much disinformation in here its crazy.

autohome123

Oh fuck. lol but still, he should have had sufficient BP in the account to cover.

autohome123

If an in the money option is purchased the account should have sufficient BP for an immediate exercise. If not the trade should kick for review. Guessing this guy doesn’t have anywhere near the $needed for this exercise which should have then prompted a call from the BD and a reject on the order.

autohome123

Better question is why did they let him take this position in the first place. There is no way he had sufficient BP to fill the trade.

TheFreshOne

I'm going for BP calls. One of these days, I'll finally get a win. :*)

Incendras

It explains a majority of the difference. AI heavily impacts SPY, so yeah it actually makes sense. 100BP cut wont happen, if it did, yes it would send equities flying, while simultaneously weakening the dollar.

dansdansy

Notably, there is a ton of drilling by companies like BP, Exxon, Shell and Chevron close to Venezuela and Guyana. If they retaliated against the oil fields it could cause a pretty serious supply effect. The US is the largest oil exporter in the world right now.

papakong88

If you have 10K in cash you will have 10K in buying power (BP). The BP can be used as collateral to sell options. A naked put or call requires about 20% of the notional value as collateral. For example, you can sell 1 XYZ 100 cash secured put but you can sell 5 naked puts. If the put is assigned, you can buy 20 K of stock on margin with the 10K. You will be in trouble if you have sold 5 naked puts. You can do that at any broker - but you need approval to sell naked options. You can use the 10K in BP to sell spreads to achieve a greater “leverage”. But you will need approval to sell spreads. The approval level for naked options is higher than that for spreads. The rule is the same at any broker.  

farcat

Holding 1 beautiful 115c for December. Once I have some more BP freed up I will get some more. I was perplexed when they dropped under 100, so thats when I started flipping calls. But now im thinking, as painful as it is, I need to buy stock and let it simmer a year or 2.

papakong88

u/Miserable-Dingo2728, I am moving your question here, so the discussion will be in one place: *“Based on the newly posted strategy for rolling an ITM PS after you found out at 10.30 AM that you are 190 points ITM, what was the thought process behind rolling it to Monday with the same strike-24740. Based on your strategy wouldn't it have been a right decision to roll it to ATM on Monday and then shorting a CS?* *However I am happy that your roll worked out!”* The procedure is used to roll an ITM PS or CS out with the objective of getting the cost and risk down to as low as reasonably achievable (ALARA) level. The available resource is the BP for 2 ICs. At 10:30 am CT on Friday, 10/10/25, NDX=24550. The 24740 PS is 190 ITM and would have a max loss. The first step is to roll the PS out. This usually will have a cost. Then we will sell PS and CS to lower the cost.    To achieve the ALARA objective, we can vary many parameters such as the expiration date, the strikes and the number of PS or CS sold. The process is iterative, i.e., the parameters are changed until the objective is met. The objective is met if the cost is below an acceptance criteria. My acceptance criteria is $5. (This is arbitrary. It is an individual choice.) We will try to roll it out to Monday, 10/13. Roll out even to 24740 would cost 9.00. Roll out ATM to 24550 would cost much more. If we roll out even and then sell 2 PS, we can meet the acceptance criteria. Therefore, it is not necessary to sell a CS. If we roll ATM to 24550 then sell 2 PS,  we cannot meet the acceptance criteria. We must sell a CS. It’s a judgment call. Every setup is the correct setup based on our judgment. Looking back, I had 3 episodes of potential max loss of 100. They are documented in [https://www.reddit.com/r/options/comments/1l28vfd/0dte\_with\_ndx/](https://www.reddit.com/r/options/comments/1l28vfd/0dte_with_ndx/) The dates are - 1/27/25, 8/19/25 and 10/10/25. You will see the rolls are different but the basic principle is the same - roll and have somebody paid for it.  

LadyQRex

There are several major BP companies that would love to acquire the IBRX pipeline. With all of its patents, the company should be worth 10x more than what the SP suggests. We have to deal with the shorts first which would give him plenty of leverage in partnership negotiations. In a worst case scenario, he sells and we still win.

AippleMac

Ps Also a good path of science I like seeing. Some of the BP banter was…..

atx78701

Most people won't beat the s&p It can be done but not by trading I get the best return when something bad happens to a fundamentally solid company and the stock takes a big hit. Mostly I do vgt Things like Exxon oil spill, BP oil spill, mad cow disease, covid, etc Those things are not very often so I rarely watch the market

Disastrous_Room_927

>am I green at any point the stock moves up? Not necessarily - you only gain intrinsic value on calls that are ITM, and it's extrinsic value will change based on (among other things): * Time: theta isn't as big of a factor when you buy that far out, but that call will lose value over time regardless. * Volatility: you'll be long vega so the call loses extrinsic value if volatility decreases. These things are part of why a synthetic long is buying a call and selling a put at the same strike and expiry: the greeks and extrinsic value offset each other, and you're at approximately 100 delta regardless of how the price moves. It's not always the case that this means the premiums and greeks cancel each other out - pricing may reflect expected dividends that you'd miss not holding actual shares, so on something like TLT you might net 25 dollars opening a synthetic long near the ex-div date. In isolation, BP usage is the same regardless of the strike, but you can be strategic about it - if you already have a long put, open near it can make it so that you can open that synthetic position for next to no BP hit and use cash that would otherwise be tied up elsewhere (provided that you're careful about having BP available for assignment). Or you can selling deep ITM on the put side for a massive credit, and if your broker supports it, earn interest on the cash you receive that's being held as collateral (an example of this would be if your broker does cash sweeps for collateral or allows you to trade with t-bills instead of cash).

farcat

Orcl CEO's wife was just confirmed as a Chinese operative tasked with infiltrating silicon Valley business to steal tech/trade secrets. Huge liability on ORCL's part. Not sure if this news is priced in yet, id imagine orcl dumping much harder. Do with that as you will, my BP is depleted but id be tempted to pick up some 90 day puts

SlothsonSpeed

I'm already almost out of BP. What a fucking poor

EfficientAd7124

I’m looking for prices to drop as revenue increases from Grab’s other services! Ideally as Grab’s margins, efficiency, and total revenue across services increase, so does the SEA economy, creating a “double driver” for growth of Grab. Grab is a great way to invest in SEA overall, because over the next decade Grab will benefit heavily from the rising consumer BP. Also, tourism is also set to rise still over the next 5 years, which will help the company grow as well.

papakong88

The options have no value in the last week and can be rolled out. I let it expire because I have BP to sell the new one.

hgreenblatt

Fine if you continue to get interest on the Cash of the Cash Secured Put. Otherwise it stinks. Also most are not happy to get a stock as it goes below their buy price. In a Margin Account with Selling of Options approved, the following Amzn, Appl,Googl, Coin,Bidu, Nvda, QQQ allow you to Sell Puts for 2k-6k in buying power, so a 230 Google Put is about 3k BP where the BP may be earning interest. 3k a lot less than 23k. That is called Leverage.

Orantolifestyle

How do you have $160 BP with only a $12k account?

rackoblack

It varies every time, but lately it's been to book LTCG for expenses in FIRE. I try to choose holdings that are a hold rating, at best, rather than selling those at a buy. Over the 30y getting to here, about 1/3 of our nw ended up self-managed in from 10-25 stocks/ETFs at any given time, ended up about half of that is in rollover IRAs. I got in and out of BP, in after they blew up the gulf out with some profits. I got into GE from teh get go because who didn't want GE! Bought more at their low of $6 going into 2009, made plenty of dividends along the way but ultimately closed the position and moved on when it became clear they were not good at being a conglomerate or doing more than one thing at a time. Generally, if Morningstar rates something I own at a hold or better, I'll hold. I'll consider adding more at four or five stars. I always had DRIP turned on up until FIRE, now the taxable account divs we keep as cash for expenses while the IRAs. Some core holdings, I'd sell around the core - trim a bit at low 4+ stars, add some back at lower share rates, sometimes doing so with TLH in the taxable side if losses were there to be booked. TL;DR The answer is basically it varies, bordering on never.

maroLem87

Worth mentioning that BP and Energy Impact Fund decide that $3.15 per stock is a fair price to convert their 25M loan [https://www.sec.gov/Archives/edgar/data/1847986/000149315225018691/form8-k.htm](https://www.sec.gov/Archives/edgar/data/1847986/000149315225018691/form8-k.htm)

Just_a_Berliner

Equinor, Shell, BP.

Putrid_Leg_1474

I hope so. Sadly the quoted prices displayed me in negative BP. Would have likely resulted in a false margin call tomorrow. Had to throw some wings on a SLV strangle to free up some stuff. Didn't want to do that at all.

Much_Willingness4597

It’s not about directly about losing money a blind squirrel would’ve made money in the last 10 years… ESG was really never about trying to do “good” it was about avoiding companies that didn’t control asymmetric risk factors. Take BP in oil. I know people who work in oil Fields, and who operate on rigs. They were well known to be absolutely insane cowboy doing dumb shit. On deep water Horizion there were a dozen things they should have done they didn’t and ALL of them at a normal oil offshore operator like Chevron: 1. Required a VP signature.(and no VP would’ve signed off on any of those risks). 2. Would have resulted in an immediate termination if anyone found out you were doing them.

snake_case_captain

Your ass just got [reverse split](https://share.google/a10YvBiyIExgRR1BP)

HunterAffectionate96

Bechtel is the best out there - no doubt on that when it comes to construction. Execution not only applies to Bechtel but how capable is the management is the real question. Everyone can agree Cheniere management is exceptional - when it comes to operations. An example of this is VG - not very good guys. Sometimes people need to learn not to believe everything that the management says. VG mgmt told investors arbitration should be favorable - but then recently got smashed when they lost to BP (albeit won against SHEL). How about the next 5 arbitrations? NEXT mgmt says macro outlook is good - yes but not in the near term (of course I might be wrong) but seems the risk / reward is a bit skewed imo. Russian Arctic 2 is a big risk (and Sakhalin and Yamal will continue to run) not to mention Qatar NFE. Recently Pouyanne (TTE CEO) and SHEL and other major IOCs saying LNG oversupply is a key risk in the near term. These guys know what they are doing - have robust trading / marketing businesses and are the major LNG offtakers. Of course I might be wrong but there are other good and less risky investments out there that NEXT.

greytoc

You are correct. It can in theory be done with a Reg-T account at RH. But the leverage is a lot less. Last time that I looked - RH doesn't offer PM margin or the ability to generate a synthetic loan using box-spreads. Without the ability to generate a synthetic loan - it would seem a lot more inefficient. With a broker like Schwab or Ibkr - the way it works would be something like this. Investor has $500k in a PM account. Assuming that the account is 100% invested - this could result in about $300k in BP. Let's say the investor wants to borrow 100k for 3 months. They could generate a synthetic loan of $100k by writing an SPX 3 month box spread. This would generate 100k in cash at approximately 4.2% rate today. The BP impact in a PM account is only about $150 per spread. The investor can then withdraw up to 100k.

miTgiB37

The failing fiat currency only is screaming buy hard assets. So gold/silver and their mining stocks, timber REITs, oil stocks, income producing real estate...... I am sitting on about 5% physical gold/silver, a good chunk of GDX, NEM AEM B and lots of CVX XOM BP

Sunt_Furtuna

But you have to have a large account to do that, no? Like, you run out of BP pretty quick.

papakong88

The 0DTE strategy recommends that for each IC we sell, we must have BP reserved for 2 ICs. In my example, I will be selling 2 PS for $1 each early in the day. At this price, the strike is OTM. The amount OTM is equal to 3X the Expected Move.

Citizen_of_Danksburg

BP?

beans420666

Lost half my BP on Thursday on 0dte, decided to just add to long term instead and start again with what's left on Monday. I'm going to bring my BP and get money back 💯 💪 Nice gains. You have a great trading strategy. Keep up the grind 💪 🔥 💰