Option Trading Articles: RE: [TheOptionClub.com] My Kid's trading account

Joey,

I’d start with TOS support – I didn’t think the margin changed on debit spreads as long as the # of contracts matched on each side. I’m already organized as a business and that hasn’t helped.

But I am considering changing brokers because of the crazy margin requirements at TOS.

Best wishes,

Renee

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Joey Huckabee
Sent: Friday, July 30, 2010 8:59 PM
To: OptionClub@yahoogroups.com
Subject: [TheOptionClub.com] My Kid's trading account

I just opened up TOS and was looking at some trades that I was
thinking of placing for my minor's account and was surprised by the
"new regulations" that TOS has rolled out.
Remember Children can not have margin accounts so this is treated like
an IRA.... and BTW I have been reading the POSTs about this I was just
surprised that I was affected by it as well.

Here is an Example:

Vertical BUY +10 IBM AUG 10 115 PUT
SELL -10 IBM AUG 10 110 PUT
OLD BP EFFECT $80.00
NEW BP EFFECT $110,050.00

THIS IS A DEBT SPREAD!!!!!! and forget about a spread using calls...
it is not allowed.

I am not sure what I am going to do... move brokers, organize as a
business... any thoughts?

Thanks,

Joey

__._,_.___

Reply to sender | Reply to group | Reply via web post | Start a New Topic

Messages in this topic (4)

Recent Activity:

New Members 18

Visit Your Group

The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading. All messages and postings, and any materials circulated are provided for discussion and educational purposes only. No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice. All investors are encouraged to consult a qualified professional before trading in any security. Stock and option trading involves risk and is not suitable for most people. There is no guarantee that any information provided is accurate and, may in fact, be wrong. It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student. As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.

To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com

MARKETPLACE

Get great advice about dogs and cats. Visit the Dog & Cat Answers Center.

Stay on top of your group activity without leaving the page you're on - Get the Yahoo! Toolbar now.

Hobbies & Activities Zone: Find others who share your passions! Explore new interests.