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As said earlier, your risk is being assigned on your calls. You may want to look as buying a deep put, or doing a combo where you buy the put and sell the corresponding call. You will pay a premium here representing the "hard to borrow" premium, but will not have the same risk of assignment.

If you put a .40 bid in, you will be joined by the marketmakers. I played with these after I saw your post and was immediatly joined for every bid I put in ( I stopped at .55). For thinly traded stocks, the MM's will typically leave a wide market, but if a good order comes in they will trade...

I watch the COB (complex order book). At the CBOE market makers/broker dealers cannot leave orders in the COB for SPX options, they can only take orders out, so when you see a large order sitting there its not a marker maker's. These have been placed in the weeklies for some time. The...

Not the case. This was the same guy. The people who trade against these sellers are generally the market makers in the pit. Their spreads get put in their positions and hedged. They will not have to cover the entire spread at once, especially the put side that is trading at 0. I often...

SPX on Friday June 24th 1268.45 SPX on Friday July 1st 1339.67 There were several large customers selling out of the money put and call spreads in the SPX weekly options early last week. Seemed pretty safe, turned out not to be. Saw many 1000 lots that were sold at .30 and .40 being...

RMORSE gave an excellent summary. Just to add a bit, Each brokerage house will have a different policy of where to send a spread based on the product. For instance, for the SPX the broker may send the order to the floor and then let the executing broker decide whether to hold the order or...

I have been trading the binaries on the SPX (BSZ) and the VIX (BVZ) on the CBOE for awhile. I think they offer some great opportunities, especially for condor traders as they require less contracts to achieve the same result. I think they have great potential. That being said, here are the...

Today's opening print for the expiring June futures and options was based on the opening print of the July SPX 500 options. The series that the print is based on is listed on the CFE web site. The public has a chance to participate in the process. Opening imbalances are listed on the web...

Looks like we will have to wait until late July now. http://www.automatedtrader.net/real-time-dow-jones/61496/cboe-dealt-another-delay-for-electronic-sp-options

Or another easy way to look at it is your long option will automatically be "sold" for you and your short option will be "bought" for you at the settlement price. So if the SPX settled at 1299 in your example, your long 1290 puts would be "sold" for you a zero, as they are out of the money...

I have never gotten any money from being long stock. If you do I think your brokerage firm is unique.

The problem with this is the 140 put would still contain the "premium" for the short stock. If you did this play you would be synthetically long the June 140 call (if you sold that out you would simply be long a box) No profit opportunity here.

This shows the edge you have by selling a put instead of simply buying the stock. Doing the entire reversal (selling a put and buying the same strike call) is essentially the same as buying the stock. If you do this in June options, you are essentially being paid an extra $4 over the price of...

Looks like much more. Between 50 and 100%

Stock is very hard to borrow, So there is a huge premium in the conversions. Easy money for the brokers who are holding this stock. They can loan it out for great profits.

I believe the OP was referring to the Weekly options on the future, which expired Friday.

The July VIX options are priced off the July VIX futures. There is a pure arb here as both will expire at the same price. The expiration print is based on the opening price of the SPX options on the morning of the VIX expiration. For example when the Vix May futures and options expire May...

Newwurldmn is absolutely correct. Remember that you can trade stocks after hours as well and have until 4:30 central to exercise. So you may buy GLD, AAPL or whatever stocks that have been very volatile, after hours and then exercise your options later that wouldn't have been a good...

Not all options are traded in pennies, many are not including apparently DBA. You may see a last price in a penny increment as some stocks/etfs will allow spreads to trade in pennies, even though individual options cant. In other products such as the spx and oex spreads cant trade in penny...

They way it is usually done is you would sell a deep in the money call spread. You would then exercise your long calls and have long stock. If all your short calls are assigned, you would have no position. For every short call that is not assigned, you would then have that short against your...