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ETJ - Thank you for your response. I don't have a background on all the mechanics / terminology but I think I understand most of what you presented. The example you provided shows intentional manipulation on the part of the trader. Kind of devious. For the record, I just have one account with...

Well, the at the money'ish contracts had volume in the thousands today and OTMs had volume in excess of 500, all within a spread differential between the bid and ask of 5 or 6 cents. Where is the "thinness" and how do you determine what is thin and what is not? It's not like Autozone (AZO) at...

Arturo100: I thought I was clear but for clarification, here you go: "The above account is trading thinly traded options in a manner that could be viewed as taking advantage of liquidity and price improvements. The client needs to modify their trading behavior to not have the appearance of...

To quote Smokey Robinson - I second that emotion. :)

Would you care to share which strikes you are attempting? RE: T-Bills I do not want to speak for blueraincap, however, T-Bills are still taxed at the federal level. As such, an SPX "synthetic" would have two advantages: 1) Since it is not "ordinary income," any losses could be used to offset...

Stochastix: The only thing they offered was the text I posted. I will keep in mind the FINRA question if I reinitiate discussion on this with them. ETJ: Do you have a link to the details regarding this derived order rule? All the major exchanges are quoting these contracts. MW: Yes, it...

Thanks, Mark. Gambit, I may have to do just that, one way or another. I never had a problem with this before and I've been with this broker forever. I never knew we could get into trouble for buying and selling within a 6 cent spread.

Good Afternoon ET - I have come to realize that with the appearance of "manipulative trading," we are not innocent until proven guilty. In fact, we are not even guilty until proven innocent. We are guilty if we "seem to be guilty" and could get our accounts restricted and ultimately zapped...

Don't forget the "Safe Harbor" rules that allow you to pay zero to very little in estimated payments if you fall under specific criteria. Good luck. AZD

In other words, "Using this particular example, you will now pay 16 times the former commission rate or a 1500% increase." What about the closing transaction? That will be costly as well. What about clients who trade 4000 contract positions? A $1200+ commission versus the former $20...

If you are approved at the level of selling uncovered calls and puts, there should not be a problem. You asked, "Would they require more margin than normal? " Do you mean because you are a beginner in options? Your margin requirements should be consistent with other traders within that...

"#1. When selling a call and a put this is called? and is it naked? Three weeks ago, I sold the 113 strike call @ about a buck and sold the 105 put at about a buck" This is usually called a "strangle" and yes it is naked if you do not own any underlying shares or offsetting contracts at...

Yes, I agree. The details would be helpful not only for us but for yourself as well. For example: What instrument (s) were you using? How did the size on this position (these positions) differ from your other trades? How long did you wait before adjusting/closing positions? What...

Well, if I am understanding everything correctly, from the information you posted: 1) In the account, you are long 100 shares of Thompson Creek Metals. 2) In the account, you own 1 October 11 put which gives you the right to sell 100 shares of Thompson Creek Metals at 11. 3) Thompson...

From what you wrote, it looks like you are long 1 contract at a strike price of 11. With the stock at 13+, it appears that this contract will just expire worthless. It looks like someone bought "protection" in August for your existing 100 shares. Your were on hold for 30 minutes? It sounds...

Perhaps it might be best to call the broker directly. We don't have enough details. If you are long the contract and there is no bid, there is nothing wrong with letting it expire. However, if you are long the contract and something dramatic happens in the next 2 days and it ends up...

You tried to sell to close and the order was rejected? Are you sure you are long this 1 contract? AZD

Hi Adam, I just saw your message. So you sold the 108 calls and bought the 109 calls for a credit of .10. Right now, my quotes show the natural for these contracts at .45 (1.02 and .57). The most you can lose is .90 plus commissions. The bright side is that you didn't sell the 108...

Adam, Exactly. That settlement number can be unpredictable. Even if the SPX opens up +10, for example, there is no guarantee that the actual SET gap up might not be +25 as it is computed on the opening number on each of the components. Inversely, on the downside, the same is true. I...

Good question. First, you made out very well with your 1100/1075 call spread. Congrats. However, because that spread is rather wide (25 points), for all intents and purposes, you were "uncovered" on those 1075 calls all the way up to the 1100 strike. So, if you did 10 contracts, a gap up...