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And don't forget liquidity by the way..

In this case, and for similar scenarios, the credit is used as collateral. The full credit is not profit unless the underlying price drops to the strike price. In other words, with these deep in the money credit spreads, the full profit is never realized. As I stated in a previous example, I...

No, the $10,000 you see is the credit being received for opening this deep in the money call credit spread. As the width of the strikes is equal to 100. There is no margin requirement for this particular spread in this case...

I entered the trades as a single spread order..

I have had these filled in the past..

Well yes, I see your point. But every now and then, anomalies occur in options trading. And I have actually been filled in these type of spreads before. Legging in also works, however there is extra risk in that.

Yes, I profit mainly by trading in the range of the mid price. I have done quite well from this strategy, and the more contracts, the more profit.

The margin requirement for vertical spreads is width of the strikes, minus price. So in this case, the margin is actually 0. When I said volatility is huge with NDX, I was referring mostly to daily range.

The mid price just has to reach the lower price. In other words, as per my example, the mid would need to reach 98 and I then set up a buy limit order of 98.

Yes, that is the price of the underlying NDX. However I am referring to the mid price of the credit spread. The width of my chosen strikes here is 100, so I were to be filled at 100 (I have had similar fills in the past) and I then proceeded to buy back when the mid price fell to 98, then the...

I have not opened the trade yet as the market is closed. However, if the price were to drop to say 98, from 100, the profit would be $200 per contract..

So I am a big fan of vertical credit spreads in options trading, mainly because they have limited risk. Of course, the reward is also limited, however I find they have a greater chance of success, over simple directional trading. This current spread I am about to open (tomorrow as the market is...

Yes indeed. One full point move with an order of this size would be worth 20 million, up or down.

Just trying to gauge whether this can be done really. Tapping into the largest contract sizes can be the most profitable, especially when some option spreads can be executed very cheaply.

Has anyone on this forum ever hit the 200k or more number of contracts when trading options? I know the threshold for equity options is 250k, and I believe with index options there is no limit. I am thinking in particular with vertical spreads etc, this large trading size may come in useful, if...

Yes limit orders, I meant to specify in my post.

I find myself getting filled at mid price quite frequently, especially on the indexes such as Ndx, Spx etc. This can be much more profitable than being filled at either the bid or the ask, depending of course on whether one is buying or selling.

I'm not sure what your problem is. I said the volatility in SPREADS associated with options trading on Amazon has been affected, not volatility of the stock itself. Instead of coming here and making insulting comments towards others, perhaps you need learn to read first...

It is explained in my original post. Put simply, AMZN had more volatility pre-split. Noboby said anything about 'free money', margin in spreads in equal to the width of the strikes. Not sure what your problem is exactly, you come across as arrogant.

The strike intervals for AMZN since the split, are now in .5 increments, as opposed to whole number increments pre-split. In the money strikes begin at 60, whereas before they would be 700 at a minimum. I found it far more profitable trading with wider strikes on this particular stock.