How/why am I Margin Trading on TD Ameritrade and how can I
How/why am I Margin Trading on TD Ameritrade and how can I
TD Ameritrade Pattern Day Trading Rules For 2020
Basics of Buying on Margin: What Is Margin Trading
Leverage: What It Is and How to Use it in Margin Trading
Brokerage Margin Account and Interest Rates | TD Ameritrade
How/why am I Margin Trading on TD Ameritrade and how can I stop?
Please understand that this isn't intended to be a click-baity title, nor is this about me raging about impulses I can't avoid. The problem is that about 3 months ago I opened a TD Ameritrade account, I made a deposit and I've spent the last few months making strategic stock purchases. This is all fine and not margin trading... I thought? I noticed a couple of weeks ago that most (although not all) of my stocks had a "required maintenance" value. It was my understanding that you only have a required maintenance value for your stocks if you are margin trading. I do not, nor did I ever, intend to make margin trades. What's most odd is that of the 13 stocks I am holding, 10 of them have a maintenance required value while the remaining 3 do not. To my recollection, none of them were purchased in a different way. They were all market purchases on the given day I chose to buy the respective stock. I have tried my best to buy stocks with only the amount of cash I have available. I'm not interested in buying more stock than cash I have on-hand, but I guess there's a chance I made such a mistake if I misunderstood a value in a cash-available field. Sorry to ramble, but what I'd really like to know is how could this have happened? In Ameritrade, is regular trading the same as margin trading once you've spent all your cash on hand? If not, are there other reasons why I'm seeing maintenance required values? Is there a way where I can force my account to not be allowed to margin trade, or have the maintenance requirements? I've tried to search for some of these answers on Ameritrade, but I can't find them. If someone is familiar with this platform and could shed a little light on my errors, I'd appreciate it. My maintenance requirements aren't that bad but still, I'd rather not have them at all. Thank you.
Does trading with pure cash on a margin account still get you flagged as a PDT under TD Ameritrade?
So here is my current understanding. If you have a margin account, you must have $25k in order to make 4 intraday deals within a 5 day period. If you have a cash account, you can make however many trades you want. But what if you have a margin account but only trade using cash? Will you still get flagged as a PDT? Ive searched online and im having trouble finding a clear answer. Thanks for any input.
Options trader here trying to learn more about the specifics on futures specifically with TD Ameritrade. Are you able to use day trade margin and day trade micro e-mini contracts for $50 and e mini contracts for $500 as long as you close the position before 5pm? Or does TD Ameritrade not provide this option? Seen it on other brokers websites but cant find anything on TD Ameritrade’s. Thanks
Trading in IRA with limited margin? TD Ameritrade or TradeStation?
I can't find much discussion about day trading in an IRA and virtually nothing about IRAs with TradeStation. So I'm looking if anyone who does has any insight that could help me. I was going to open a Roth IRA with Schwab today. Short version is they initially told me I only needed the normal $2,000 for limited margin IRA account. But turns out that wasn't the case when I went to actually open it as the application clearly states you must maintain 25K for limited margin. I'm not even sure if I want to do cash or limited margin, but I feel best being at a broker where I can enable it if I decide it would be beneficial over cash account. Goal is to keep IRA like 50% long term investments/ETFs and 50% day or swing trading (mostly swing I guess due to PDT rule). I want to get it over 25K as soon as possible for PDT. TradeStation and TD Ameritrade are telling me I just need the normal $2,000 for limited margin. I'm a little concerned that whenever TD Ameritrade integrates with Schwab they could switch to Schwab's rules. I'm also between brokers for my main trading account though. I'm expecting to use TradeStation, but that isn't certain yet. Not sure if it is really beneficial in any way to have both at the same broker. I was feeling a bit better about having my IRA with Schwab due to the far customer service, website, etc. TS also has a $35 annual fee which is a little annoying when my IRA will be small for now. I opened a TD Ameritrade account to play around with tos but I don't expect to use it for main trading account. An IRA there may be fine though.
I keep getting ads like this, "we will loan you 100k for buying stocks". how very 1929. all being marketed to anyone with a pulse, i got approved for higher level options and derivative trading at td ameritrade and i don't have a job or a real address. lots of margin.
[help] Trading stocks with margin on TD Ameritrade
I am approved for margin trading and have been able to trade futures just fine, but I would like to leverage trade some tech stocks while I can use my capital in other trades as well. Does anyone have experience with TD Ameritrade for this?
I’ve been trading for a couple years, but I’ve just begun to take it seriously in the last few months. Robinhood is too simplistic for me and is dragging when I’m trying to open/close contracts. Suggestions on a new platform? I use my phone consistently but also have a laptop. I have about a 25k portfolio and like to day/swing trade options. I’m thinking about getting into crypto, and looking for a bit more research capability, as well. ThinkorSwim? Is this different than TD? Thanks in advance.
I have used MetaTrader for forex in the past and Alpaca for equities, and would now like to get a little more serious. I am currently trying to choose between IBKR vs. TDA for trading equities, futures (including cryptocurrency), forex, options, and pretty much whatever I can, via API. I plan on building with Python. What matters most to me is that my orders execute reliably and quickly. Good fills, things get triggered, not eaten up by all the wtf? fees but I don't mind paying commission for quality, data feed quality, etc. If it gets a signal, I don't want to have to worry about my broker crapping on me. I do not care how hard it is to use or set up as long as I can count on it in the end. I will take the time to get it right and want to use it long-term for trading everything. I do not plan to use any UI much if at all, everything done through code. What has been your experience in using IBKR vs. TDA for your algorithmic trading?
Are there any Platforms that treat SPAC shares as Marginable Securities?
I'm on an eTrade margin account, I was going to leverage some money on CCXX shares, but it turns out it's considered a "non-marginable" security. Are there any Platforms that treat SPAC shares (or even better, SPAC units) as Marginable Securities, so you can leverage your money on them with little downside?
Will Karaman | A Scammer Who Should be Avoided At All Costs[PSA]
I am posting this here as, many of you are new traders, with little capital in your brokerage account, exactly the type of person who would fall victim to this scam. Will Karaman(Other aliases: William Karaman, William Michael Karaman) is a person who opened multiple options trading "strategies" that do not give the trader an edge(hint: none do, there is no edge, sorry). Recently, in April, after the Mid-March-Meltdown, he opened two groups(options society and investors society) costing about $500 each. If you were unfortunate enough to pay for one of these programs, you would receive an invite to a Discord chat to the corresponding group. According to Karaman, he earned, about 70-75k from this scheme(140-150 users from both programs combined). Karaman had amassed a portfolio value of about 400-500k before the revenue from the webinar. After launching this webinar, he had hired a few different people - one of them 'infamously' named "Yanni". After hiring a 'team' of people to run this business. Karaman spent no time, spending his newfound cash on risky FD's(using margin & credit), lavish AirBnBs, renting exotic cars, and doing drugs(K2 & Xanax - He thought he was smoking marijuana and popping adderall?). This, of course, blew up in his face. On June 20th, everything went dark, Youtube channel was taken down, and all that remained, was a Snapchat story showing a loss of 106,000.00 or 101.5% of his portfolio value on the Robinhood app. He took out a 30K LOC from Chase, and essentially YOLO'd it on SQQQ calls and TSLA puts to achieve this accomplishment. He also lost 40k of his father's retirement money on similar risky options plays(citation needed). Yanni, evidently treated an employee of Modera Central(The apartment Karaman was living in at the time) with disrespect, and caused commotion well after "Night hours" set by the apartment, and the City of Orlando on multiple occasions. This ofcourse led to Karaman being evicted from the apartment. He flew his roommate he was living with at the time to California(citation needed), and he was going to live with him. The roommate, in an act of good judgement, decided not to rent with Karaman, rendering him homeless. The spice(K2) that was given to Karaman, apparently had some very bad health effects, that led to disastrous use of these two drugs(Xanax a CNS depressant and K2 a stimulant). At this point, he went to the only people who he knew would actually care about him, his parents. His parents very quickly sent him to a drug rehab center for a total of 8 days(Citation needed). While he was there he was prescribed Zyprexa, an antipsychotic used to treat schizophrenia and bipolar disorder; likely indicating his issues are not a direct result of an acute drug addiction. On July 15th, he announced he was no longer taking the Zyprexa, this led to his last few videos to showcase very unusual and manic, and unstable behavior. He announced personal details, that probably would be taboo or disrespectful to release, such as - Yanni's Parents own the Greek Corner in Downtown Orlando. He held a public meetup at the Robinson in Downtown Orlando, which only 1 of his personal friends showed up, while he claimed adamantly, he had a "whole team", which was discovered to be a lie. He later said, that he was approved for a penthouse apartment at 55 West, this in my logical belief, has to be a lie as well. The apartment in question is a 3 bedroom, 3 bathroom apartment that has a value of ~3,000 monthly rent, and since 55W requires 3x rent in monthly income; that means that Karaman would have to make 9,000/month to live there(notwithstanding his prior eviction, which would disqualify him for renting for 2 years regardless(citation needed). As of July 19th, his second new Instagram account has been removed, likely for harassing people who DM him for money. Nothing has been heard from Karaman since July 15th. It is likely he is staying in hotels/motels in the Downtown Orlando area, or he lives back with his parents(There is no evidence to support either claim). On or around July 21st, he allegedly passed out while in public, he was taken to a hospital where he pulled a fire alarm. He was subsequently placed under Florida Baker Act. Once released from the hospital, he made 2 Instagram posts totaling over an hour, trying to get his 'followers' to buy items that were purchased during his manic episode, such as computer parts, MacBooks, books and random electronic items he had accumulated. He claimed the funds would be used to trade option contracts, when he has -$30,000 balance with his Chase LOC, it is assumed he was living with his parents at the time. It is confirmed he was still trading with a $300 TD Ameritrade account, where he verified his losses, totalling over $100,000. On Tuesday July 28th, he was evicted/kicked out of his parents house by the police, rendering Will homeless. He spent the remainder of that day, wandering around, and later harassing the store manager at the Oviedo Publix, causing another police presence. It is assumed he moved back with his parents by that evening. Either later that evening, or the evening of the 29th, his parents(or Will himself) called the police. This led to the police placing Will under Florida Baker Act once again, where he was taken to a psychiatric treatment center. I did not pay for this program, but a few over at wsb did, and provided me with information to exactly what happened. On August 4th, Will Karaman announced his return to social media on his Instagram story. This is my Wikipedia timeline of this particular scammer. Will Karaman is not the only scamme"stock guru" out there, just the most interesting, we live in a time of incredible access to information, please do not give anyone money relating to any type of stock advice, or trading course.
Post 1: Basics: CALL, PUT, exercise, ITM, ATM, OTM Post 2: Basics: Buying and Selling, the Greeks Post 3a: Simple Strategies Post 3b: Advanced Strategies Post 4a: Example of trades (short puts, covered calls, and verticals) Post 4b: Example of trades (calendars and hedges) --- This is a follow up of the first post. The basics: Volatility and Time Now that you understand the basics of intrinsic and extrinsic values and how together gives a price to the premium, it is important to understand how the extrinsic value is actually calculated. The intrinsic value is easy: The intrinsic value of a call = share price - strike (if positive, $0 otherwise) The intrinsic value of a put = strike - share price (if positive, $0 otherwise) The extrinsic value is mostly based on two variables: volatility of the share price and time. Given the historic volatility, and the predicted volatility, how far can the share price go by the expiration date? The longer the date, and the higher the share volatility, the higher the chance of the share to change significantly. A share that jumped from $25 to $50 in the past few weeks (hello NKLA!) will have much higher volatility than a share that stayed at $50 for several months in a row. Similarly, an option expiring in two months will have a higher extrinsic value than an option expiring in one month, just because the share has more chances to move more in two months than a single month. The extrinsic value is calculated as a combination of both the expiration date (how many days to expiration, hours even when you are close to expiration), and the implied volatility of the share. Each strike, call or put, will have their own implied volatility. It is quite noticeable when you look at all the strikes for the same expiration. Sometimes, you can even arbitrage this between strikes and expiration dates. The basics: Buying and Selling contracts Until now, we have only talked about buying call and put contracts. You pay a premium to get a contract that allows you to buy (call) or sell (put) shares of a specific instrument. As your risk is the cost of your premium, you can notice that buying options is a risky proposition. To make a profit on the buying side:
You have to be directionally correct. The price must go up for calls, down for puts.
AND the share price move must be bigger than the premium you paid.
AND the share price move must happen before the option expiration.
You will notice that it is pretty unforgiving. Sure, when you are right, you can make a 100% to 1000% profit in a few months, weeks, or even days. But there is a big chance that you will suffer death by thousands of cuts with your long call or put contracts losing value every day and become worthless. We were discussing earlier how volatile stocks can have a high extrinsic value. What happens to your option price if the share is changing a lot and suddenly calms down? The extrinsic portion of the option price will crater quickly because volatility dropped, and time is still passing every day. The same way you can buy options, you can also sell call and put options. Instead of buying the right to exercise your ITM calls and puts, you sell that right to a 3rd party (usually market makers). To make a profit on the selling side:
You have to be directionally correct.
OR the share price does not move as much as the premium.
OR the share price does not move before the option expiration.
Buying calls and puts mean that you need to have strong convictions on the share’s direction. I know that I am not good at predicting the future. However, I do believe in reversion to the mean (especially in this market :)), and I like to be paid as time is passing. In case you didn't guess yet, yes, I mostly sell options, I don’t buy them. This is a different risk, instead of death by a thousand cuts, a single trade can have a big loss, so proper contract sizing is really important. It is worth noting that because you sold the right of exercise to a 3rd party, they can exercise at any time the option is ITM. When one party exercises, the broker randomly picks one of the option sellers and exercises the contract there. When you are on the receiving end of the exercise, it is called an assignment. As indicated earlier, for most parts, you will not be getting assigned on your short options as long as there is some extrinsic value left (because it is more profitable to sell the option than exercising it). Deep ITM options are more at risk, due to the sometimes inexistent extrinsic value. Also, the options just before the ex-dividend date when the dividend is as bigger than the extrinsic value are at risk, as it is a good way to get the dividend for a smaller cash outlay with little risk. In summary:
Buying a call, you hope the price to go up significantly.
Max loss is the premium. You lose money with time.
Max profit is infinity, minus the premium.
Buying a put, you hope the price to go down significantly.
Max loss is the premium. You lose money with time.
Max profit is the strike price, minus the premium.
Selling a call, you hope the price to not change much, or to go down.
Max loss is infinity (just don’t sell straight calls, at most do verticals - see next post).
Max profit is the premium. You profit from time.
Selling a put, you hope the price to not change much, or to go up.
Max loss is the strike price.
Max profit is the premium. You profit from time.
The Greeks Each option contract has a complex formula to calculate its premium (Black-Scholes is usually a good initial option pricing model to calculate the premiums). Things that will determine the option premium are:
Current share price
Call or Put
American or European style options
Cost of money (or risk-free rate)
And the time to expiration
There are four key values calculated from the current option price: delta, gamma, theta, and vega. In the options world, we call them ‘the Greeks’. Delta is how correlated your option price is compared to the underlying share price. By definition 100 shares have a delta of 100. If an option has a delta of 50, it means that if the share price increases by $1, the new price of your option means that you earned $50. Conversely, a drop of $1 means you will lose $50. Each call contract bought will have a delta from 0 to 100. A deep ITM call will have a delta close to 100. An ATM call will have a delta around 50. Note that on expiration day, as the intrinsic value disappears, an ATM call behaves like the share price, with a delta close to 100. Buying a put will have a negative delta. A deep ITM put will have a delta close to -100. Selling a call will have a negative delta, selling a put will have a positive delta. Gamma is the rate of change of delta as the underlying share price changes. Unless you are a market maker or doing gamma scalping (profiting from small changes in the share price), you should not worry too much about gamma. Theta is how much money you lose or profit per day (week-end included!) on your option contracts. If you bought a call/put, your theta will be negative (you lose money every day due to the time passing closer to the contract expiration, and your option price slowly eroding). If you sold a call/put, your theta will be positive (you earn money every day from the premium). It is important to note that the theta accelerates as you get closer to the expiration. For the same strike and volatility, a theta for an option that has one month left will be smaller than the theta for an option that has one week left, and bigger than an option that has 6 months left. In the third post, I will explain how you can take advantage of this. FWIW, with the current volatility, I get 0.1% to 0.2% of Return On Risk per day, so roughly 35% to 70% of return annualized. I don’t expect these numbers to keep like this for a long time, but I will profit as long as we are in this sideways market. I also have an overall positive delta, so I will benefit as the market goes up, and theta gain will soften the blow when the market goes down. Vega is how much your option price will increase or decrease when the implied volatility of the share price increase by 1%. If you bought some puts or calls, your vega will be positive, as your extrinsic value will increase when volatility increases. Conversely, if you sold some puts or calls, your vega will be negative. On the sell side, you want the actual volatility to be lower than the implied volatility to make money. This is why we often say that you sell options to sell the volatility. When volatility is high, sell options. When volatility is low, buy options. Not the opposite. This also explains why some people lose money when playing stock earnings despite being directionally correct. Before earnings, the option price takes into account the expected stock price change, so the volatility is significantly higher than usual. They bought an expensive call or put, numbers are out, share price moves in the correct direction, but because suddenly the volatility dropped (no uncertainty about the earnings anymore), the extrinsic value of the option got crushed, and offset the increase in intrinsic value. The result is not as much profit as expected or even a loss. Bid/Ask spread Options are less liquid than the corresponding shares, especially given the sheer quantity of strikes and expiration dates. The gap between the bid and the ask can be pretty big. If you are not careful about how you enter and exit the trade, you will transform a profitable trade into a losing one. Due to the small contract costs, the bid/ask spread adds up quickly, and with the trading fees, they can represent 10% or more of your profit. Beware! Never ever buy or sell an option at the market price. Always use a limit order, start with the mid-price, or be even more aggressive. See if someone bites, it happens. If not, give up $0.05 or less, wait a bit longer, and do it again. Be patient. If you are at mid-price between the bid and the ask, and you think this is a fair price, and the market or time is on your side, again just be patient. It is better to not enter a trade that is not in your own terms than overpaying/underselling and reducing your profit/risk ratio too much. LEAPs Leap options have a very long expiration date. Usually one year or more. ETF indexes, like SPY, can have leaps of 1, 2, or 3 years away. They offer some advantages as they have a low theta. A deep ITM Leap can behave like the stock with 30% of the cost. Just remember that if the share drops by 30% long term, you will lose everything. Watch out! This is a personal experience of mine in 2008, where I diversified away from a few companies to many more companies by buying multiple leaps. It was akin to changing 100 shares into options with a delta of 250. However, when the market tanked, all these deep ITM leaps lost significantly (more than if I only had 100 shares). Good lesson learned. You win some, you lose some. Number of shares The vast majority of options trades at 100 shares per contract. But during share splits, or reverse splits, company reorganizations, or special dividend distributions, the numbers of shares can change. The options are automatically updated. The 1:N splits are easily converted as you just get more contracts, and your strike is getting adjusted. For example, let’s say you own 1 contract of ABC with a strike of $200 controlling 100 shares (so exposure to $20k). Then the company splits 1:4, you are going to get 4 contracts with a strike of $50, with each contract controlling 100 shares (so still the same exposure of $20k). The N:1 reverse splits are a tad more complex. Say you have 1 contract of ABC with a strike of $1, controlling 100 shares (so exposure to $100). Then the company reverse splits 5:1, you are going to still get 1 contract, but with a strike of $5, with each contract controlling 20 shares (so still the same exposure of $100). You will still be able to trade these 20 shares contracts but they will slowly trade less and less and disappear over time, as new 100 shares contracts will be created alongside. Brokers and fees In my experience, ThinkOrSwim (TOS owned by TD Ameritrade, being bought by Schwab) is one of the very best brokers to trade options. The software on PC, Mac, iPad, or iPhone is top-notch. Very easy to use, very intuitive, very responsive. Pricing on contracts dropped recently, it’s now $0.65 per contract, with $0 for exercise or assignment. You may actually be able to negotiate an even better price. I also have Interactive Brokers (IB), and that’s the other side of the spectrum. The software is very buggy, unstable, unintuitive, and slow to update. I tried few options trades and got too frustrated to continue. Too bad, it has very good margin rates (although if you are an option seller it is not really needed, as you receive cash when you open your trades). However, it’s perfectly acceptable to trade plain ETFs and shares. Market Markers Most of the options you buy or sell from will be provided by the Markets Makers. Do not expect that you will get good deals from them. You will see in the third post how you selling a put and buying a call is equivalent to buy a share. When you buy/sell a call / put from the market makers, you are guaranteed that they will hedge their corresponding positions by buying/selling a share and the opposite options (put/call). The next post will introduce you to simple option strategies. --- Post 1: Basics: CALL, PUT, exercise, ITM, ATM, OTM Post 2: Basics: Buying and Selling, the Greeks Post 3a: Simple Strategies Post 3b: Advanced Strategies Post 4a: Example of trades (short puts, covered calls, and verticals) Post 4b: Example of trades (calendars and hedges)
I've been a trader for just under two months, making a few trades but just recently I sold a stock and instead of the money being available to trade, it went to cash alternatives. Now through my 5 minutes of googling I found out the money will settle in 3 days and all will be good. But I was wondering why it happened to this trade specifically and not my other trades? Some things to note about this trade: I was using money that I just put into the account like maybe a day ago, also I used substantially more money than my previous trades. Does some of these factor in to why my money went into cash alternatives?
Disclosure; I DID NOT WRITE THIS, but why should I, what do you think I am, smart? No, no I am not, so that is why I used the words of people who actually went to college for this shit. 157.5c 8/28 Hello again fellow retards and autists, I have another fundamentally backed DD, which seemed to work for the last time to forecast if an earnings announcement will beat estimates. Today, the DD is for LOW (Lowe's Companies Inc.) Background; Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer in the United States, Canada, and Mexico. The company offers a line of products for construction, maintenance, repair, remodeling, and decorating. Fundamentals; CFRA; Home improvement should benefit from a significant shift in consumer spending, in our view, to the home from travel, live events, and restaurants. We think the new normal from Covid-19 could be households investing more in their homes, whether they be the backyard, or remodeling a kitchen or bathroom, or finishing a basement. The Do-It-Yourselfsegment showed strong sales in Apr-Q, and we think the PRO segment (contractors) is picking up. Another catalyst for LOW, in our view, is the housing market, which may have more substantial sales growth in the second half of 2020. Risks to our recommendation and target include a severe recession, a decline in home improvement projects, and reduced consumer confidence. LOW, with new management, is still in the middle innings of transforming the company with improved sales execution, inventory controls, better supply chain, and revamped stores, in our opinion. With better operational performance, we think LOW can deliver improved sales growth in FY 21 (Jan.). We see7.0%-9.0% same-store sales growth in FY 21, as we see LOW divest unprofitable stores, especially in Canada, and invest in its operations from supply chain to store operations. Same-store or comp sales for U.S.stores were up 12.3% in Apr-Q. LOW is moving to staff outsourcing to reduce costs while improving new merchandising and investing in its supply chain system, which will likely boost sales with the PRO segment for local contractors. We expect FY 21 operating margins to widen to 10.5%-11.0%, from 9.1%in FY 20. We believe LOW is executing better, especially on supply chain processes and store management. New investments for lowes.comis showing positive sales traction with digital sales up 80% in Apr-Q. The company is moving its decade-old platform to Google Cloud. DuringCovid-19, we think it has enabled LOW to compete as an omnichannel retailer with a user-friendly website. CORPORATE OVERVIEW. Lowe's Companies, Inc. (LOW) is the world's second-largest home improvement retailer. As of January 31, 2020, Lowe's operated 1,977 home improvement and hardware stores, representing 208.2 million sq. Ft. of retail selling space. CORPORATE STRATEGY. The company has brought on a new management team that is executing a new strategy with a sharper focus on its core business, divesting non-core units such as Orchard SupplyHardware stores with a $230 million non-cash charge, and aligning its goals with shareholder value. The market opportunity is to accelerate its progress to capture a healthy and growing home improvement market in the U.S. market, in our opinion. COMPETITIVE LANDSCAPE. LOW is second only to the market leader, Home Depot. While it is never good to be behind, LOW has upside potential to regain market share with better execution on its business plan to improve customer service, store availability of the most widely sold 1,000 items; and efficiencies in purchasing, supply chain, and store management, in our view. LOW has a home center exclusive on Craftsman products, meaning you can't get them at Home Depot or other stores. LOW's management acknowledges that the company has a disadvantage to Home Depot, the market leader, in real estate locations in the metro areas in the Northeast and West Coast markets. Besides the physical store locations, LOW will work hard on targeting the do-it-yourself customer and its Pro segment. From our perspective, LOW's operational outlook is tied more to better execution than the competitive dynamics it faces with Home Depot in select U.S. regions. LOW can be a better omnichannel retailer, whereby it can connect and align its systems and processes to drive an improved customer experience via online and in-store shopping. In our view, the home improvement segment has been resilient to substitution by online providers such as Amazon, as professional and consumer customers prefer to shop or pick up items in the stores. LOW states that 60% of its e-commerce purchases are picked up at local stores. MARKET PROFILE. The company serves homeowners, renters, and professional customers (Pro customers). Individual homeowners and renters complete a wide array of projects and vary along the spectrum of do-it-yourself (DIY) and do-it-for-me (DIFM). The Pro customer consists of two broad categories: construction trades; and maintenance, repair & operations. The U.S. market remains LOW's predominant market, accounting for 95% of consolidated sales in FY 19. From a market tracking perspective, the company's revenues are included in the Building Material and Garden Equipment and Supplies Dealers Subsector (444) of the Retail Trade Sector of the North American Industry Classification System (NAICS). This is the standard used by Federal statistical agencies in classifying business establishments to collect, analyze, and publish statistical data related to the U.S. business economy. Many variables affect consumer demand for home improvement products and services LOW offers. Key indicators to monitor include real disposable personal income, employment, home prices, and housing turnover. We also track demographic and societal trends that shape home improvement in industry growth. We are positive on home improvement spending with home equity increasing from rising home prices for 96% of U.S. households that do not move. Affordability of purchasing a new home or resale is becoming an issue for most families that are recognizing the value of staying put in their homes. With rising home equity values, the opportunity shifts to higher spending for home improvement, where LOW is a direct beneficiary. MANAGEMENT. The new CEO has brought senior executives for the CFO, merchandising, supply chain, and store management, and continues to look for a new chief information officer (CIO). In progress is a new strategic focus that enhances its resources, performance, and return of capital. The risk with new management, in our opinion, is distilling its strategy and operational excellence to the store manager level. FINANCIAL TRENDS. At the end of Apr-Q, LOW has total liquidity at $9.0 billion: $6.0 billion in cash and cash equivalents and $3.0 billion in undrawn capacity on its revolving credit facilities for any unanticipated liquidity risk. During the Apr-Q, the company raised $4 billion in senior unsecured notes, suspended the share repurchase program, and paid $420 million in cash dividends by quarter-end. In Apr-Q, total days inventory outstanding improved to 94.9 days versus 103.2 days in the same period a year ago, while average days payable declined to 59.0 days in Apr-Q versus 61.5 days in the year-earlier quarter. Total debt to total capital was 93.9% in Apr-Q compared to 87.2% in the year-earlier quarter, as the company undertook actions to boost corporate liquidity during uncertain market conditions due to Covid-19. TheStreet; The revenue growth came in higher than the subsector average of 11.3%. Since the same quarter one year prior, revenues rose by 10.9%. Growth in the company's revenue appears to have helped boost the earnings per share. Powered by its strong earnings growth of 34.35% and other important driving factors, this stock has surged by 54.40% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher even though it has already enjoyed nice gains in the past year. LOWE'S COS INC has improved earnings per share by 34.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LOWE'S COS INCincreased its bottom line by earning $5.47 versus $2.80 in the prior year. This year, the market expects an improvement in earnings ($6.89 versus $5.47). The same quarter one year ago, the net income growth has significantly exceeded that of the S&P 500and the Building Material, Garden Equipment, Supplies Deal subsector. The net income increased by 27.8% compared to the same quarter one year prior, rising from $1,046.00 million to $1,337.00 million. The company's current return on equity significantly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Building Material and Garden Equipment and Supplies subsector and the overall market, LOWE'S COSINC's return on equity significantly exceeds that of both the subsector average and the S&P 500. TL;DR Although LOW has direct competition with HD (Home Depot), there are some upsides it has (see COMPETITIVE LANDSCAPE) 157.5c 8/28 🚀🚀🚀 and smd🌈🐻 Sources; https://research.ameritrade.com/grid/wwws/research/reports/viewreport?id=20034&documenttag=LOW&c_name=invest_VENDOR https://research.ameritrade.com/grid/wwws/research/reports/viewreport?id=72&documenttag=54866110&c_name=invest_VENDOR Edit 1: With IV coming up in question a lot, it should be noted that, historically, around earnings, IV has crept to a high of ~70%, while with no news expected, the IV remains at a stable ~30%; so at most, a ~40% drop in IV wouldn't qualify it as a crush. Edit 2: (shortened TL;DR) Recently (Aug. 12) Lowe's announced that they were adding fulfillment centers, large-appliance sites for faster delivery, meaning they have money to improve supply chain efficiency, which means they must be having more cash flown into the company 7 out of 3 stars deep for calls. Edit 3: Completely forgot to mention a lumber shortage since early July that has been increasing in demand ever since, meaning increased revenue for LOW as LOW is a direct beneficiary of increased lumber prices - (sneaky edit here) The commodity ticker LBS for Lumber has had a nice run-up of 106.83% from 6/11 til now, and it is not showing signs of exhaustion. Edit 4: My play(s); See where IV takes us and if it gets too high (70%+), I will close all my positions, if 50-60%+, will close 2/3 of my positions. After the earnings report, which they will beat (and that's a fact), I'll see where technicals stand, historically, if the stock is above the 200 and 21 MA after earnings, it moons to new highs, see 20 May '20, 20 Nov '19, 21 Aug '19 earnings, so calls are dirt cheap at the bottom of these post-earnings reversals, and buy back 8/28 or 9/4 calls and ride this train to tendie town. Edit 5: Post seems ded now, but if you post something, at least be right or retarded.
Ok Lads, we need to tool up. What we need is more people running scanners on specific types of tickers, but we have a drastic shortage of users who know how to do that. I've compiled a very short list of "How to" video recommendations. Some of these are just basic stuff to get started, not necessarily for scanners, and any other suggestions are requested. I've listed a few different suggestions, across a couple different platforms. Again, the goal here is to Run Scanners but this might help some of us get up to speed so we can move towards that goal. Youtube is flooded with crappy "KnOwLeDgE" memes masquerading as trading guru's. So my list is very fucking short, but I'll add more when i find good ones, and please recommend any you know of, that dont start off by show me their yacht collection. TD Ameritrades Platform Think Or Swim (ToS). This platform does not require a funded account to use, and provides lots of tools. "Getting started on ThinkOrSwim (ToS)" ~23 minute video by InTheMoney ~couple months old think or swim ToS FINVIZ This platform is rather hard to look at. Its alot of info and parsing what you need is tough if you dont get all the extra stuff its displaying, also this platform runs ~20 minutes behind the actual market. This is a broswer platform, no app required, good resource. "FINVIZ SCANNER" ~16 minute video by Charlie from Ziptrader. ~1 year old Charlie also puts out videos for penny and non-penny stock alerts. Would highly recommend watchlisting his channel, but you will probably get those horrible "Raging Bull" adds from Google. FINVIZ "Webull Scanner" ~6 minute video from Ziptrader ~1 year old This is another one from Charlie. Webull is probably one of the better platforms, if your trading from mobile. Which i bet alot of us are right now. The first con of Webull is that account approval can take an hour, or 3 weeks. It is however, a far superior option than Robinhood. Webull scanner quick mention for Robinhood The only good thing about Robinhood, is that its probably how you entered trading in the first place. Level two data is an excellent, clean way to check for stuff like sell walls, but thats $5 a month. If your using the free app, you are basically gambling. The interface is gamefied, and reinforces bad habits. You cannot check for confirmation or validation, its just squiggly lines and candle charts you wont be able to interpret meaningfully. It is however a good place to park unsettled cash, since it will provide you the free day trades. Scope tickers elsewhere, use the extra day trades on RH. If you apply (RH calls it downgrading) for a cash account instead of the standard margin account, you do not require 25k to day trade, and get unlimited day trades. You do however have to wait ~5 business days for cash to settle from any sales you have made. Scanners people. Scanners. Weed out the vast pile of tickers. Edits: reformatting, typos, updates as they come. Innacurate information will be struck through but not removed.
Im from brunei and would like to trade options and open spreads on margin. However, TD Ameritrade doesn’t allow me (maybe because I’m a student with no job, little trading experience, little knowledge?(I completed their course and got a cert)). I’ve got more than the requirement in the account and even provided a bank statement to prove that I’ve got more $$(less than $50k) in the bank account but somehow they just don’t want to take my money. So Im wondering if there are any other brokerages that lets me open spreads on margin. Thanks!! Edit: i have less than 50k overall in both bank and tda account and most brokers need at least 100k for option margin.
Hi, I am about to start live trade on TOS, for the first time. I have been doing paper trading for a few months. I plan to trade small amounts with minimal risk of loss, in the $10-$20 range, jus to get the hang of it, and test myself in real-time trading. I plan to put the needed 25k for the PDT rule. The main question I have is about the margin rate TD Ameritrade charges me. What is this rate, and how is this calculated? For example, if I buy a share at $100 and sell at $110, my understanding is that I pocket the $10 (in T+2 time). Is this correct? If not, what should I keep in mind? Sorry for re-post if any, couldn't find a relevant post in my search. Thanks in advance for your inputs.
Cannot sell dropping option position! Over $1000 lost due to TOS order cancellation failure.
https://imgur.com/a/ibn0dfV I'm typing this real-time. Market closes in 8 minutes. Here you can see the issue, while trying to sell back a TSLA put, the order became hung and there seems to be no way for me to cancel this and update it with a new order. After trying to cancel/replace that order, as well as attempting to market sell it (unsuccessfully) I've just called into TD Ameritrade and I'm currently on hold with a representative as he attempts to contact the trading desk to force-close the position. Has anyone else run into this? I'm not sure why this error has occurred. As I write this, the market is closing in 30 seconds and I don't think they'll be able to sell it in time. The market has just closed, and I got a notification that my position has been sold. I'm still on hold to see if they'll compensate me for the loss I've taken in the meantime. I've just been told that the market maker had a system outage and TD Ameritrade was not capable of cancelling the order. I still have the option in my account. They're offering me lower options rates and a lower overnight margin rate.
I requested to allow margin trading on my TD Ameritrade account and now I am able to trade on margin. Although I have no plans whatsoever to trade on margin, it appears that is the only way it is allowing me to trade. I have $200+ in total cash in my account but it says my margin balance is -$54.38. I requested to have margin trading removed from my account but I am worried about the balance. What should I do to fix it?
I must have missed the memo on this, but TD Ameritrade effectively killed day trading on cash accounts by making the T+2 apply on selling and not allowing a day trade without incurring a good faith violation. Apparently this went into effect in June and their current work around to make sure you won't be hit with a violation is to check the amount you're able to transfer out of the account before making the trade. So the "Stock Buying Power" isn't an accurate reflection of what you can use to trade. I was hit with a violation on Monday and called to hear the change in their system. They say that the government is making them do this because of the volatility in the Market. Anyone know if other brokerage companies are doing this? It basically forced me to switch to a Margin account so I don't have to deal with this BS. My suspicion is that this is a ploy to have people switch to Margin accounts since cash accounts give them little to no opportunity to make any money. Anyone have any thoughts on this?
Okay so for the past 2 weeks I’ve been trading a shit ton more than I normally do. I usually put all my money in what I want then leave it and check it once a month (not a risky person). Well that being said I lost 75% of my account so basically everything that wasn’t nailed down. Since I don’t trade frequently and look to keep stocks for over a year, I started to look into the penalties of trading frequently. Yes I’m a dumbass since I did this after I did all my trading. I found out about my good friend good faith violation. To my knowledge I have not committed this (YET). That being said I have bought sold and bought stocks well within the 2 day period for the funds to settle. I use ameritrade and wait until my money shows up in available funds for trading, so I’m technically not buying with money I don’t have. But when that money shows up in that category it is WELL before 2 days have passed since the purchase sell purchase sell of stocks. Long story short, am I fucked?
Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges subject to TD Ameritrade review and approval. Carefully review the Margin Handbook and Margin Disclosure Document for more details. Margin trading can seem complex but once you learn the basics of buying on margin and you understand the benefits and risks it becomes a powerful, if somewhat dangerous tool. 4 min read | Margin. Options trading subject to TD Ameritrade review and approval. † Margin trading increases risk of loss and includes the possibility of a forced sale if account equity drops below required levels. Margin is not available in all account types. Margin trading privileges subject to TD Ameritrade review and approval. Carefully review the Margin Handbook and Margin Disclosure Document for more details. Margin buying power limits, and $25,000 minimum equity balance PDT restrictions. How many day trades does TD Ameritrade allow on cash account. TD Ameritrade Pattern Day Trading Anyone who day trades has probably run into the SEC’s rules and restrictions on pattern day trading. Margin trading entails greater risk, including, but not limited to, risk of loss and incurrence of margin interest debt, and is not suitable for all investors. Please assess your financial circumstances and risk tolerance before trading on margin. Margin credit is extended by National Financial Services, Member NYSE, SIPC.
What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... #tdameritrade #options #optiontrading #princedykes How to buy and sell options w/ TD Ameritrade(4mins) The Investor Show is an financial literacy and comment... Margin Trading 101: How It Works - Duration: 7:02. ... 3 Must Enable Settings For Day Trading with TD Ameritrade - Duration: 10:36. Warrior Trading 189,264 views. 10:36. Welcome to TD Ameritrade's YouTube channel, the place to find videos that demonstrate our online trading platforms and technology as well as explain our inve... This tutorial explains how I got TD Ameritrade margin account approval in about 7 minutes as a beginner trader. This is the first step if you want to start t...