Purchasing T-bills with unrealized cash

August 11th, 2016, 01:51 AM

I'm a straddle writer that typically carries 30 to 40% of my net liquidity as unrealized cash, on which I’d like to earn some interest.

Does any one know which clearing firms allow the purchase of T-bills in excess of net liquidity?

Spoke with Wedbush today, and they do not.

August 11th, 2016, 02:17 AM

Stephen M

I'm a straddle writer that typically carries 30 to 40% of my net liquidity as unrealized cash, on which I’d like to earn some interest.

Does any one know which clearing firms allow the purchase of T-bills in excess of net liquidity?

Spoke with Wedbush today, and they do not.

In my RJO account I held T-bills during the years when intest rates were higher.

Best regards, Myrrdin

August 11th, 2016, 05:50 PM

myrrdin

In my RJO account I held T-bills during the years when intest rates were higher.

In excess of net liquidity?

I'm currently buying boxes with margin and unrealized cash at Interactive Brokers. SPX index options boxes yield 0.85%, about twice as much as one year t-bills, but they end up in the securities side of my account.

Can use ES in the commodity side, but yield is 20 basis points lower.

Others buying boxes? Which contracts?

August 12th, 2016, 12:32 AM

Stephen M

In excess of net liquidity?

I assume that with "net liquidity" you mean money to buy / sell additional futures.

Yes, I bought T-bills in excess of net liquidity. They were used insted of cash to cover margin.

Best regards, Myrrdin

Purchasing T-bills with unrealized cash

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Purchasing T-bills with unrealized cash