Oct. 06, 2023
Dear All,
I hope this email finds you well.
I do not agree with the proposal as it exempts the trader and allows them to offset the delta of a short put with a long call. This is under Finra Rule 4210 ("Protected options"). They can offset their position by holding a position on the other side in stock baskets, non-leveraged index mutual funds and ETF. If the option goes sideways the trader MUST have enough margin/collateral. Positions should be hedged with the underlying asset, not delta. Traders should NOT have the opportunity to offset short option positions with ETFs and stock baskets.
Best Regards,
Individual Trader/Investor