Aaron
Lv 4
Aaron asked in Business & FinanceInvesting · 9 years ago

Can you buy a put from one broker and use it for the shares you own at another broker?

Can you buy a put from one broker and use it for the shares you own at another broker?

3 Answers

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  • 9 years ago
    Favorite Answer

    It can be done, but not that easily and not that popular of a move either with the firms involved or with practicality.

    You would have to either have the put moved to the firm that is holding you stock or have the stock moved to the broker that has the put.

    All options positions are held by OCC, the holder of the put would have to have option moved the current brokerage firm to the new brokerage firm.

    It would be easier to move the stock at the present broker to the broker holding the put. This would have to be done through the ACATS system which would be initiated at your request by the broker hold the stock. The broker holding the stock can, and probably will, charge you for moving the stock.

    It may be easier and cheaper to close out the option and buy it back at the other firm or easier yet, just carry two long positions with the two brokerage firms

    Source(s): from the street
  • Anonymous
    9 years ago

    Yes.

    But, I'm not sure why you think this is important...broker one isn't going to treat you any different if that is what you are asking.

    I have one account that I use mostly for trading options -- 80% of which is hedging. I usually buy calls and puts to protect positions in other accounts. Now and then I will sell. Most often these positions appear to this broker as naked (because I don't own the shares in this account), but they are not because I hold the shares in other accounts. I will still settle for cash (because I am hedging) and my margin is handled as if they are naked positions.

  • JoeyV
    Lv 7
    9 years ago

    Sure but you are taking on BS paperwork and BS fee risk.

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