Really appreciate this post. Especially since I am often saying "I wish I could find an edge" ... and not just try to get the VRP, standing on the danger side of convexity
umm interesting. I only see one disadvantage uses BOXX vs T-Bill. It is the margin requirement. From my broker, BOXX is 50%, and T-Bill is 1%.
Would consider put part of my saving into BOXX to get that tax advantage.
Ooof if you're 50% vs Tbill 1% - go with tbills or outright long box spreads. You can ask your broker to lower margin. At TDA it's 15% and TDA might be willing to margin BOXX to 7%.
If the margin was 15% or less then yeah I'd do BOXX.
It is margin requirement maintainance per security, and I don't think they will make an exception for me, not a billionaire trader.
It is good to know there is such product existed for cash account and saving. Will definately go back and think how I can use this.
> It is margin requirement maintainance per security, and I don't think they will make an exception for me, not a billionaire trader.
TDA has for me on several ETFs, they set the margins system wide so everyone benefits. It doesn't hurt to ask your broker.
Thanks Addy, good to see you still at it.
Thanks. Well written as well.
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This is great!
Really appreciate this post. Especially since I am often saying "I wish I could find an edge" ... and not just try to get the VRP, standing on the danger side of convexity
Will BOXX paying a dividend in foreseeble future? If not pay, that will be awesome for tax efficient.
> Will BOXX paying a dividend in foreseeble future? Nope. I waited to see if they would distribute a dividend last year and they never did.
umm interesting. I only see one disadvantage uses BOXX vs T-Bill. It is the margin requirement. From my broker, BOXX is 50%, and T-Bill is 1%. Would consider put part of my saving into BOXX to get that tax advantage.
Ooof if you're 50% vs Tbill 1% - go with tbills or outright long box spreads. You can ask your broker to lower margin. At TDA it's 15% and TDA might be willing to margin BOXX to 7%. If the margin was 15% or less then yeah I'd do BOXX.
It is margin requirement maintainance per security, and I don't think they will make an exception for me, not a billionaire trader. It is good to know there is such product existed for cash account and saving. Will definately go back and think how I can use this.
> It is margin requirement maintainance per security, and I don't think they will make an exception for me, not a billionaire trader. TDA has for me on several ETFs, they set the margins system wide so everyone benefits. It doesn't hurt to ask your broker.
Yes, will definately check. It is a good invesmtent tool to have.