Option traders' cash is as good as Stock traders' cash. Please help us to improve Cash Plus and SmartSave for all traders
Please improve Cash Plus and SmartSave for us options trader ![]()
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In the earlier post, where I talked about how an option trader can use Money Market Funds (MMF) like $Fullerton SGD Cash Fund(SG9999005961.FD$ and $CSOP USD Money Market Fund(SGXZ96797238.FD$ to gain extra yield of up to 5% instead of letting the money sit idling. This is amazing as that is an extra $500 annually, for every $10k locked collateral, but the current system only allows us to put about 50% of the locked collateral into MMF. Thus we are "losing" $250 for every $10k locked collateral.
For stock trader, they can treat 99% of the money in MMF as though they are cash if SmartSave is activated.
Sadly for options trader, currently we can't put 99% of the money locked up as options collateral into the MMF. Only about 50% can be used. It is like option traders' money is not as good as a stock traders' money ![]()
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So hopefully, Moo Moo can increase that closer to 99% so that we options trader don't feel like the unwanted child ![]()
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For example, in the post above where I'm doing long term Cash Secured PUT in $Grab Holdings(GRAB.US$. The PUT will expires 1 year, and the cash collateral that is put into it is USD$5,000. Due to the margin calculation, only about USD$2,500 can be placed into $CSOP USD Money Market Fund(SGXZ96797238.FD$ that is earning 3.6%, and the other USD$2,500 is just sitting idle collecting dust for 1 year. The $5,000 could have been earning about $180 in totality, but now it is only earning an extra $90.
That is just 1 position. If we account for my other positions in $NIO Inc(NIO.US$, $Palantir(PLTR.US$, $UP Fintech(TIGR.US$, $Warner Bros Discovery(WBD.US$, $Twitter (Delisted)(TWTR.US$, $StoneCo(STNE.US$ and $Bed Bath & Beyond Inc(BBBY.US$. That is a lot of wasted money ![]()
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Hopefully for all future cash plus benefit, options and futures trader could be considered too so that we can benefit and use MMF more and more ![]()
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GoLeopard : doc, if we enable SmartSave, can we still buy and use the coupons for the funds?
doctorpot1OP GoLeopard: when using the coupon, I paused smartsave. money put into funds by smartsave cannot use coupon, so have to pause it then manually subscribe to the funds and choose the coupon.
it is good to pause it when using coupon
GoLeopard : oic, didn't know this is the way. Documentation needs more improvements, asking you is easier
doctorpot1OP GoLeopard: can join the moomoo event and promo group chat too. we sharing MMF coupon links when we found it hehehe
GoLeopard : joined!
Passive Investor : talk
doctorpot1OP Passive Investor: Why do you think so? This don’t work for you as you seems to be buying PUT. This is for people who do CSP.
AcevedoMan47 : I love this idea
71183734 GoLeopard: O lo
doctorpot1OP AcevedoMan47: Hi 5
You do options too ?
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