Agreed, these are not marginable transactions, still some option transactions are and most brokerages require a margin account if you are to trade in options to cover the landscape of option transactions.
Seems to me my solution of separate accounts is simpler than hunting for a firm that will set up an option account for these limited option transactions.
I was also thinking what if I am a large instutional investor and my shares have been loaned out to shorts. Couldn't I call my broker and demand delivery of the shares.
Now the broker has to call in all my shares that have been loaned out forcing the shorts to cover to deliver the shares. Can't I as a large instutional investor create something of a short covering panic and drive up the price so I can sell higher?
I was thinking about this. Someone borrows your shares and shorts them. Then they have to pay you the dividend equivalent (but it really isn't a dividend).
Now I was thinking dividends are taxed at lower rates than earned income, so if you get a fee from a short (not a dividend) don't you get screwed tax wise? Anyone experienced this? Wouldn't you get pissed at your broker for loaning out your shares if you get screwed tax wise?