I am dropping Etrade/Ameritrade. Unless you keep all of your money on your line, and close out each night (As some wise day traders do, or should do) Etrade/Ameritrade is not a good deal. You are right about too conservative. I usually go long, occasionally short, and rarely trade the small changes, so this is not for me. I am not sure who
Yeah, but if we can get etrade to change, maybe that is worth a buck or more a share. I mean it.
My example: Wrote covered calls against part of my position, as the value of eln increases, calls become more valuable too but since eln is not marginable, ironically I am close to getting a margin call! That is messed up... I had to sell a little today cause of this.
Transfer your eln shares at ET to a cash account (type 1) so they cannot be loaned to shorts. The stock stays inside your brokerage account. It just cannot be borrowed against (which means nothing when ET has a 100% equity requirement on eln) or loaned.
If enough longs transfer eln to a cash account, the broker may have to call on some shorts to cover.
I emailed them two weeks ago, this is their reply :
"Thank you for your inquiry regarding the ELN position. I apologize for
any inconvenience the 100% margin requirement may have caused. I will
forward your inquiry to our Platinum Specialists for review. Please
allow 2-3 business days for an update. Thank you.
I hope this information has been helpful. Please let us know if we've
addressed your questions and concerns satisfactorily by clicking the
link below and taking a 30-second survey."
They still think its risky to reduce ELN's margin requirement.
Thanks. I am just in an effed up situation. Tough to complain with the appreciation I've seen, but I've never before experienced a margin call because my *long* position went up 50%!!
I would like to see no one buy ELN on margin. That will only lead to more volatility in the future and major wipeouts if we have any disappointments for some investors that get overexposed to ELN. It will also be more tempting for manipulation.