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Intersting, thanks for the update. So unless you have a futures account, you won't be able to trade these. And guessing the will be regulated by the CFTC not SEC? Did they give you a projected date when they plan to start trading?

Will be interesting to see how they structure it. Since they have both weekly and monthly futures, which ones will the dailies deliver? If they deliver futures, this may keep many brokers from offering them such as Fidelity.

Just put in 100 shares after your post, came back to me at 491% Haven't looked at May options, maybe that's suggesting this high rate is very short term. I would also love to see a comparison of rates across brokers.

Short rate yesterday for me was quoted at 490%

What I think is really interesting here is they say that "open close data confirms customer side" They say they know the customer sold the butterfly. I didn't know this information was available, that you could tell that the order was a customer and whether it was opening or closing.

@ajacobson is one of the reasons I come to ET. I have learned things from him that I never knew and couldn't find anywhere else.

I have to say Quanto, you're a tough one to figure out. You post a great deal here and you seem to get upset when people comment. I tried to point out the problem with your calculations, as they don't work with exactness in equity options due to after hours assignment risk at expiration. Your...

You still don't seem to understand. You can't let these options exercise automatically and have the OCC handle everything. These are not cash settled. You won't know if you will be assigned or not. After hours movement will affect whether long holders exercise or not. If you did this, you...

Your graph is showing P/L. Based on the prices you typed in you are paying .19 for the butterfly, so if it went out at 10, your P/L would be 10 - .19. My point is that it won't be worth 10. Thats were this system fails.

Being patient and waiting doesn't help. At the close you can't sell the spread for maximum profit and if you wait, you are at risk of not being assigned on your short calls. Your long calls in the SMCI example would be exercised, but if the stock falls further after hours, your shorts won't be...

Lets assume you are long the SMCI 860/870/880 call butterfly. With this model and others, it will assume the max profit will occur if SMCI closes at 870 on expiration, saying the butterfly is worth 10. It assumes that the 870 call is worth zero and the 860 call is worth 10. But that's not the...

The problem with this and all other options payoff calculations is they assume when the stock closes at the exact price where a short option is centered, it yields max profit. This is just not the case unless you are dealing with a cash settled index. Since you can exercise an option until 530...

NSstrikes stop being served by the market makers Non standard strikes are still quoted by MM's. Customers can also open orders here as well (if their broker does not prohibit). Liquidity may fall as new trades are generally in the standard options.

As a Market Maker, I used to come into the CBOE early Saturday morning after expiration Friday to clear up any outtrades. Was a fun time actually as many people brought their kids in and let them roam the exchange floor playing with the phones and equipment. Old days stories.

I do not know the reasoning. I assumed it was just to speed up the process. Here is a CBOE link explaining the timing of the change, Equity Options Specifications (cboe.com)

Maybe if @rmorse is reading this, he could post Lightspeeds policies on exercises/contrary exercises on expiration day, along with cutoff times.

Exactly correct. Your 50 put would not exercise automatically as it was out of the money, but you could notify your broker to exercise it when you see the stock fall. You could buy stock and exercise and lock in a profit, or you could exercise naked and be short stock.

I'm not sure what else I can say. You have been posting here as long as I have and I like reading your comments. Not trying to fight with you, but you are wrong here. This is a trade I have done many many times. I posted the idea as I thought others might be interested. You have a right...

Looks like the IBKR cutoff time is 525pm et. Delivery, Exercise and Corporate Actions | Interactive Brokers LLC

Lol, you are 100% wrong here. On expiration Friday you have until 530pm (as mentioned many brokers will have a slightly earlier cutoff time to meet this OCC deadline) to exercise an out of the money option or cancel the exercise of an in the money option. This is why you will see slightly out...