Stock Yield Enhancement Program - futures io
futures io futures trading



Stock Yield Enhancement Program


Discussion in Stocks and ETFs

Updated
      Top Posters
    1. looks_one choke35 with 2 posts (4 thanks)
    2. looks_two wldman with 1 posts (1 thanks)
    3. looks_3 rleplae with 1 posts (1 thanks)
    4. looks_4 myrrdin with 1 posts (1 thanks)
      Best Posters
    1. looks_one choke35 with 2 thanks per post
    2. looks_two wldman with 1 thanks per post
    3. looks_3 rleplae with 1 thanks per post
    4. looks_4 myrrdin with 1 thanks per post
    1. trending_up 930 views
    2. thumb_up 7 thanks given
    3. group 5 followers
    1. forum 6 posts
    2. attach_file 0 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Stock Yield Enhancement Program

(login for full post details)
  #1 (permalink)
Market Wizard
Linz Austria
 
Experience: Advanced
Platform: Zaner360, TWS, Vantage
Broker: DeCarley, IAB, RJO
Trading: Commodities
 
Posts: 1,773 since Nov 2014
Thanks: 2,921 given, 2,400 received

IAB offers participation in the "Stock Yield Enhancement Program". Participants offer their stocks to lend them out to stock sellers.

I have learnt that one disadvantage in participation in this progam is that you receive an "in lieu" payment instead of the dividend, which is treated differently by tax authorities.

Are there any other disadvantages ?

What is approximately the yield per day for lending a stock ?

Best regards, Myrrdin

Started this thread Reply With Quote
The following user says Thank You to myrrdin for this post:

Can you help answer these questions
from other members on futures io?
Neurological explanations for trading Success
Psychology and Money Management
NT8 indicator to simulate a Funding Evaluation where to …
NinjaTrader
Indicators for pair trading MES and M2K
Platforms and Indicators
Automatic pattern research with NT
Elite Algorithmic NinjaTrader Trading
Work with historical tcks data on MUltichart NET PowerLa …
MultiCharts
 
Best Threads (Most Thanked)
in the last 7 days on futures io
Battlestations: Show us your trading desks!
111 thanks
Selling Options on Futures?
109 thanks
Rank your Futures vs Stocks trading priority
37 thanks
Want your NinjaTrader indicator created, free?
26 thanks
Bitcoin storage wallet recommendations
18 thanks
 
(login for full post details)
  #3 (permalink)
Germany
 
Experience: Intermediate
Platform: Other
Trading: ES, YM, 6E
 
Posts: 2,668 since Feb 2013
Thanks: 5,099 given, 6,551 received


There are some specifics:

a) SLB is only possible for "fully paid" stocks - i.e. even if you have a margin account, the SLB stocks must be
fully paid.
b) The SLB rates depend on the respective stocks - see the TWS SLB analysis tool.
c) IB typically pays you about 50% of the income that they generate by lending out your stocks.

Reply With Quote
The following 2 users say Thank You to choke35 for this post:
 
(login for full post details)
  #4 (permalink)
Gits (Hooglede) Belgium
 
Experience: Master
Platform: NinjaTrader, Proprietary,
Broker: Ninjabrokerage/IQfeed + Synthetic datafeed
Trading: 6A, 6B, 6C, 6E, 6J, 6S, ES, NQ, YM, AEX, CL, NG, ZB, ZN, ZC, ZS, GC
 
rleplae's Avatar
 
Posts: 2,991 since Sep 2013
Thanks: 2,437 given, 5,801 received

If you lend the stock, you may not be able to vote on an annual assembly ...

You also may want to look at the specifics of the lending, does the lender give
cash in lieu ? any other guarantee ? what is the counterpart risk ?

Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to rleplae for this post:
 
(login for full post details)
  #5 (permalink)
Germany
 
Experience: Intermediate
Platform: Other
Trading: ES, YM, 6E
 
Posts: 2,668 since Feb 2013
Thanks: 5,099 given, 6,551 received


rleplae View Post
what is the counterpart risk ?

That's a valid point: SLB stocks normally drop out of the SIPC protection.
(IB complies with an offsetting SEC rule that compensates you.)

Reply With Quote
The following 2 users say Thank You to choke35 for this post:
 
(login for full post details)
  #6 (permalink)
Market Wizard
Chicago Illinois USA
 
Experience: Advanced
Broker: IB, ToS
Trading: /ES, US Equities/Options
 
wldman's Avatar
 
Posts: 3,341 since Aug 2011
Thanks: 1,978 given, 8,830 received

that all of the details are laid out on the IB web page. I do not see anything that I'd consider a disadvantage for me. I sell a lot of front ex 30 delta puts for income. I like that better...BUT on big forever positions if they are HTB you can do a lot worse.

Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to wldman for this post:
 
(login for full post details)
  #7 (permalink)
Legendary Market Wizard
Houston, TX
 
Experience: Advanced
Platform: Trading Technologies
Broker: Primary Advantage Futures. Also ED&F and Tradestation
Trading: Primarily Energy but also a little GE, GC, SI & Bitcoin
 
Posts: 3,979 since Dec 2013
Thanks: 3,284 given, 7,795 received

The other point is that they are lending it to people who are then shorting the stock. aka Working against you.

Reply With Quote


futures io Trading Community Traders Hideout Stocks and ETFs > Stock Yield Enhancement Program


Last Updated on January 1, 2018


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Battlestations! Show us your trading desk - $1,500 in prizes!

March
 

Importance of Finding Your Own Way w/Adam Grimes

Elite only
 

Journal Challenge w/Jigsaw

April
     



Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts