Most options traders leave thousands in idle cash in their accounts, earning 0%, while brokers profit. In this interview, veteran trader Ed Kurtz reveals how T-bills (treasury bills) can let you boost your returns by 4%+ risk-free without changing your options trading strategies.
Ed Kurtz has over 40 years of experience in finance and fixed income. He’s a seasoned options trader and educator who helps retail traders optimize their cash management strategies. In the interview, he shares a powerful and underused tactic involving T-bills that can significantly increase returns without adding risk.
Learn how to use T-bills to boost your returns in this video
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Why most traders are leaving money on the table
Most retail options traders let their cash sit idle in brokerage accounts. Brokers often pay little or no interest on this cash—while using it to generate profits for themselves. With interest rates back above 4%, that idle cash is now a real opportunity cost.
What are T-bills?
Treasury bills are short-term debt instruments issued by the U.S. government. They mature in a year or less and are considered one of the safest investments. Traders can use T-bills to earn interest on their unallocated cash while maintaining access to buying power for options trades. Depending on your account type, most of the T-bills are included as part of the buying power you need for doing your options trading strategies.
- You may also like this video: How to set up risk-free options trades
The double-dip strategy
Ed explains how traders can simultaneously hold T-bills and use their account buying power to sell options. This is possible because most brokers offer buying power relief when your funds are allocated to T-bills or T-bill ETFs. That means you can earn 4%+ on your cash while still using it to secure options positions—without double-spending your capital.
Setting it up in your account
You can buy T-bills through your brokerage or via TreasuryDirect.gov. However, to benefit from margin relief, it’s best to purchase T-bills directly within your trading account. Ed highlights which brokers offer the best support for this tactic, including Interactive Brokers, Fidelity, and TastyTrade.
If you prefer simplicity or your broker doesn’t support direct T-bill purchases, you can use T-bill ETFs like BIL or SGOV. These ETFs manage the laddering and rollover of short-term treasury bills automatically. Depending on your account type—Reg T or portfolio margin—you’ll get different levels of buying power relief.
How much can you earn by adding T-bills?
At current rates, Ed’s strategy adds over 4% annual return (currently 4.25%) to any unused cash in your account. That’s more than $4,000 per year on a $100,000 account—earned with zero additional risk. Even accounts as small as $10,000 can see meaningful gains.
This tactic is ideal for any options trader using cash-secured strategies or keeping a buffer in their account. It’s particularly useful for traders who maintain a conservative level of leverage.
Risks and considerations
The primary risk is overleveraging. Ed warns traders not to treat T-bills as free money—you still need to manage your notional exposure carefully. He also notes that futures and futures options require actual cash, so this strategy doesn’t apply to them.
- You may also like this video: How to build a pro-level options trading plan in 2025
Getting started with T-bills
Don’t be intimidated. Ed compares learning this strategy to placing your first options trade—it’s unfamiliar at first, but quickly becomes second nature. He encourages traders to commit to understanding how T-bills and margin relief work, calling it one of the easiest and safest ways to enhance returns.
He gives these three tips:
- Check what your broker pays on idle cash.
- Learn your broker’s policies on T-bills and margin relief.
- Start with a small T-bill purchase and grow from there.
For more guidance, Ed recommends visiting his community at Trading Roadhouse or exploring the fixed income sections of popular trading Discords.
📕 Book recommended in this video
- Lawrence G. McMillan: McMillan on options
