TD Ameritrade - Revision to rules - part 2 (aka you're screwed)

[joe_momma]

An update from my broker

They seem to be setting the stage for defaults on commodity based options and admitting that indexed options may be devalued.


Fun points - (paraphrasing)

Page 2 - section 4 -
- Indexed options can now undergo a reverse split
- Reserves right to accelerate the expiration of options (without recompense)

Page 3 - section 5 -
- The option's underlying asset may not exist at all - there is no guarantee that the writer has to deliver

Page 4 - section 7 - (the money shot)
- The OCC reserves the right to impose special excise settlement ... including cash settlement price by the writer if they would be unable to meet the delivery option.



http://www.optionsclearing.com/components/docs/May_2010_ODD_Definitive_Supplement.pdf

[Cebu_4_2]

Sounds Silver positive to me!

[Plastic]

Sounds like TD Ameritrade is in deep s**t, can't see too many account holders staying with them IF they read their statement. This could potentially collapse all trading companies nation wide if it becomes SOP as nobody would trust them anymore, not that they deserve trust to begin with or anything.

I agree, physical silver positive.

[zusn]

I remember seeing a "health" rating of all major brokerage houses about a year ago. TD Ameritrade was one of the one's in the worst shape.