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13 March 2018 @ 02:20 pm
T.D. Ameritrade acquired Scottrade  
My old brokerage Scottrade started to announce acquisition by T.D. Ameritrade over a year ago.
February 26 2018 T.D. Ameritrade, finally, moved my Scottrade accounts to https://www.tdameritrade.com

I heard about T.D. Ameritrade many times in the past, but never considered to use them as my brokerage, because of "patriotic" play in company name ("Ameri[can]"). Generally, if somebody sells you "patriotic" idea - you have to pay extra for that.

However, due to the acquisition - my only other option was to move my accounts to another brokerage. Such a move requires an effort, so I decided to stay with Ameritrade for some time.

Thanks to the acquisition, I got a chance to try T.D. Ameritrade in action.
It was a pleasant surprise. Ameritrade customer service is quite good and to the point. ThinkOrSwim trading application (that Ameritrade owns) - is quite convenient and comparable with InteractiveBrokers desktop client I used in ~2009-2010.
Options trading interface on tdameritrade.com is much better than option trading web interface on scottrade.com

The end result - I started trading options again.
For example, now, instead of buying 300 XOM shares at $74/share -- I sell (write) 3 put options contracts at $75 strike price.

Instead of selling 200 XOM shares at $80/share - I sell (write) 2 covered call options contracts at $80 strike price.

Currently I use expiration date on these options contracts -- about 3 months from now.
So if during these 3 months XOM price stays in $75 - $80/share range - then these options just expire and I enjoy the premium I collected for selling (writing) these options.
If XOM price goes above $80 - I sell my 200 XOM shares at $80/share which is profitable to me (because I bought them at $75 - $76/share).
If XOM price goes below $75 - I acquire my 200 XOM shares at $72/share ($75 strike price - $3/share for selling put option earlier). That $72/share purchase price will pay off when I sell XOM call options few months later and sell underlying XOM shares themselves after that.

Trading stocks with options like that - was possible with Scottrade too, but it was awkward (messier "option trading authorization" paperwork, messier options trading web interface).

I think Ameritrade will be able to monetize former Scottrade userbase better than Scottrade did -- by encouraging customers to trade more. I definitely started to trade more than I traded with Scottrade.

Originally posted at: https://dennisgorelik.dreamwidth.org/149305.html
cikavac1968: pic#124695981cikavac1968 on March 13th, 2018 10:37 pm (UTC)
Прикуплю себе ТД :)
Dennis Gorelikdennisgorelik on March 13th, 2018 10:45 pm (UTC)
I was also thinking about buying AMTD.
But their P/E now is at 38.11 - it seems to be too high.
Compare it with XOM P/E 23.04
cikavac1968: pic#124695981cikavac1968 on March 14th, 2018 02:40 am (UTC)
Интересно что за 15 лет они выросли на 50% всего лишь. Подозреваю, что там были какие-то разделения.
Dennis Gorelikdennisgorelik on March 14th, 2018 03:57 am (UTC)
Что такое "разделения"?

За последние 10 лет XOM вообще не вырос.
Dennis Gorelikdennisgorelik on March 15th, 2018 09:22 pm (UTC)
Splits (расщепления) не влияют на рост или падение стока, потому что одновременно меняется как текущая, так и прошлые цены.
cikavac1968: pic#124695981cikavac1968 on March 21st, 2018 05:14 am (UTC)
Я имел ввиду это:

In a spinoff, a company splits itself into two pieces: the original or parent company, and a smaller spinoff or child company. Shareholders of the parent company get shares in the child company in proportion to their parent-company ownership.

A spinoff is economically equivalent to a dividend payout, with one exception. Instead of being paid in cash or parent- company stock, shareholders are given child-company stock.

The share price of the parent company during a spinoff acts in exactly the same manner as the share price of a company issuing a dividend.

Dennis Gorelikdennisgorelik on March 21st, 2018 05:59 am (UTC)
Так ведь изменения цены стока из-за spinoff -- корректируются на графе истории цены стока:
Adjustment Factor=1+(Child Price×Child Shares) / (Parent Price×Parent Shares)
cikavac1968: pic#124695981cikavac1968 on March 21st, 2018 11:35 am (UTC)
Да, вы правы. Я посмотрел на график из примера, яху - пересчитала цену.
Христофор Арьеф: pic#125704228freeborn on March 14th, 2018 07:26 pm (UTC)
я не совсем понял стратегию - какой результат ожидается, если XOM внезапно упадёт до 30, для примера?
Dennis Gorelikdennisgorelik on March 14th, 2018 08:00 pm (UTC)
В случае падения до 30 - ожидаются убытки (виртуальные, потому что я не буду по такой низкой цене XOM продавать).
Но вероятность падения XOM до $30/share - довольно низкая (в сравнении с вероятностью того, что цена на XOM будет колебаться на примерно том же самом уровне или медленно расти).

Edited at 2018-03-14 08:01 pm (UTC)
Христофор Арьеф: pic#125704228freeborn on March 14th, 2018 08:05 pm (UTC)
Виртуальные? А put options exercise?

edited: я все время путаю call/put options, сорри.

Edited at 2018-03-14 08:10 pm (UTC)
Dennis Gorelikdennisgorelik on March 14th, 2018 08:23 pm (UTC)
Если цена упадёт до $30/share ещё до того, как put options expire - тогда убытки будут, пожалуй, невиртуальными.
Но результат будет тот же самый: я приобрету XOM по $72/share, а цена упадёт до $30/share и я буду терпеливо ждать, пока цена не вернётся назад (до уровня $75+/share), чтобы я смог продать XOM call options at $80/share strike за осмысленную цену.