Recent content by scotta65

If i am short some options and get early assignment that causes me to have an amount of shares far beyond my buying power, will IB at least wait until market open to auto-liquidate? Or do they do it in pre-market?

If this happens, why not sell ATM covered call verticals instead? You'll still get premium income, and you keep upside potential with the long option. You lose the upside equal to the width of the spread, but once the underlying gets above your long strike you're golden. I can see this being a...

Thank you for clarifying. That's how I interpreted your post earlier, but then longthewings' post seemed to contradict yours, at least the way I interpreted it. But now I am reassured

OK. So, given the example in my original post, if the VIX went from 14 to 15 and all other factors are equal, would the LEAP premium increase by .30 since that is the LEAP's current Vega and vice versa? That's really all I really want to know.

thanks. So would you say that if I were to buy a call 6 months out vs 12 months out, that, all else equal, comparing the vega of the two should not affect my decision. Since the 6 month call will have a lower vega, but more sensitive VX futures, and 12 months out would have higher vega, but less...

Say I am looking at SPY LEAPS at the money and the vega for the calls is .30. then I see that the at the money options expiring in the front month have a vega around .12. If the VIX rises by 1, then the front month options will increase by .12. My question is, will the LEAPS increase by .30? Or...

I think #3 is the missing ingredient I've been needing. Thanks for the suggestion I will try it out tomorrow.

I am trying to program a scanner but I am struggling to think what logic I could input and give me the setups I want. Basically, what I want is a stock that has been on a run and then has pulled back to a certain MA. seems simple, but its been hard filtering thru all the BS that my scanner...

My reasoning for my stop placement (and for this thread idea) is to see if anyone else who sells options manages risk the way, maybe, a stock trader would: with a stop at a dollar loss level or a price level. I think its an underappreciated philosophy that option trades don't have to be...

For those who regularly write options as their primary trading vehicle, are you setting stop losses? Whether they're by $ amount or technical level. Risk management is key in this game, especially as an option writer. I do set a stop, which is when the premium of the option doubles the price...

How would a U.S. default affect the average citizen?