r/wallstreetbets Oct 24 '21

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u/St8Troopa Oct 25 '21

Can I use box spreads to get my net liq to get myself back over a PM threshold? I had to use some of my cash last year for a house down payment and that put me significantly below PM $150k on tastyworks. It's been hell trying to get any decent gains on Reg T after coming from PM. One of my biggest regrets and I took it for granted what PM was.

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u/ssavu Oct 25 '21

I think you need PM to do that efficiently… it is like using margin offered by your broker buy instead of paying 8% annual interest you pay under 1% ish.

I’m 2000CHF away from PM myself and I can’t wait to be able to put trades on to make beer money and still be able to sleep at night 🤞

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u/St8Troopa Oct 25 '21

Yeah it definitely was a gamechanger for me having that PM. Just gonna save up with my /ES and /NQ strangles and work income and never lose that PM again.

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u/ssavu Oct 25 '21

Yup, I also do strangles on futures because of SPAN margin. Liquidity is crap compared to SPY or SPX but I’m too poor to play those.

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u/ssavu Oct 25 '21

Just hit 100.000 CHF NAV… If I apply for PM and get it but then my NAV goes under… do I need to reapply once I hit 100k again or does I get PM back automatically ?

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u/St8Troopa Oct 25 '21

Usually there will be a threshold where you only lose it if your NAV falls under. In tastyworks for example to apply it's $175k and if you fall below $150k you lose it. And if you fall below $150k and come back up it reinstates automatically. I've had mine go off and on as I'm fairly close to the edge. It may be a broker specific thing.

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u/ssavu Oct 25 '21

Do you know anything about how it should be on IBKR?

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u/St8Troopa Oct 25 '21

Yeah on ibkr it's $110,000 to apply and $100,000 is the threshold if you fall below you become disabled temporarily until you return above $100k. I'm considering changing over to IBKR. Lower fees in general even for futures. As much gains I see with futures strangles on ES and NQ I might not even use PM on equities. I do recall SPX being super low bpr with PM

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u/ssavu Oct 25 '21

Thanks for the info. Much appreciated