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Also I forgot to mention, since Tastytrade have taken such an approach, I'm not sure whether I care to trust them with any further deposits. Their margin team intervened here when it was totally unnecessary. So therefore after less than one week, and only 2 filled trades, I have an account I...

I suspect the mid price was accurate. I could have set a limit to open or close at the natural price, but that would have required more margin and resulted in less profit. The reason profit can be so high with NDX, whether ITM or not, is volatility. The price was fluctuating throughout the...

Yes. For the NDX trade, I sold a credit spread deep ITM at 15,700/15800 strikes where I was filled at 99.95. As I mentioned this required margin of $5 per contract, and I opened 5 contracts. So my total risk for this trade was $25. Obviously for a credit spreads, the price needs to move down for...

No. I attempted to open the spread for a credit of that width, but no fill. I attempted this same strategy with different strokes, same result. But I did manage to fill for 99.95/100, therefore only $5 risk per contract*5. As close as possible. Still an incredible return on investment, if I...

Oh dear. Seems you are a bit obsessed with a previous post I made, asking a very genuine question. Paper money on Thinkorswim allows you to open unlimited contracts. That's why I was inquiring about this. However, now that I am live, I don't expect to trade 1 million options contracts. And even...

5 contracts. Your sarcasm is hilarious to all of course.

That part about 'locking in a loss' was actually factually inaccurate. When placing a spread trade on deep ITM options, the price will fluctuate as any other price would. I mentioned I was up 6k with the ITM NDX trade at one point, but I could not close it out!

Well, I simply wanted to test the platform and my strategies before committing a larger sum towards this. I'm glad I didn't now, as Tastytrade is taking on a hugely authoritive approach, telling me 'They will not be supporting these order types'. I am not aware of any broker requiring a minimum...

Hello all I have recently opened and funded an account with the Tastytrade brokerage. As some will know, they are a relatively recently established brokerage who specialise in options, predominantly. My options strategy involves selling vertical, calendar, diagonal spreads deep on deep ITM...

https://www.cboe.com/tradable_products/sp_500/spx_options/specifications/ Well, here are the official specifications for the SPX from the CBOE website, as an example. If you scroll down to position limits, it clearly states that none are in effect.

How very constructive. Perhaps all your answers are exactly the same too. Move on.

Yes, but the ES is in relation to futures isn't it? The SPX which is the options, apparently does not have any position limits.

On index options such as SPX, RUT, NDX, DJX etc there are no position and exercise limits in effect. Most brokers still have some kind of order position limits however. I understand that these options are cash-settled, so that may have something to do with the unlimited position limits. How...

I use limit orders always. Never market orders.

Yes, I have actually traded as many as 200k option contracts with TD in simulation mode. I will attach trades I did today (using position of 200k each) again in Sim. I am aware fills etc are very different with fake money. However if I was able to trade this number of contracts in a live account...

Ah I see. I did not realise that prior to now. Certainly with TD Ameritrade, one can send an order with a max number of 99,000 contracts, and eight orders can be sent in one go. So quite a lot. In the case of other brokers, I have found them to indeed be quite restrictive in this regard...

Hello Robert, thank you for your reply. Any position limit up to the equity option limits applied by exchanges would be ideal. So 200/250k option contracts therefore. I couldn't envision trading beyond that limit. However, I do believe the index options such as SPX have no position limits in effect.

I am thinking of registering with Tastytrade. I am based in Europe and so therefore my choice of option brokers is somewhat limited. Interactive Brokers, to me at least, has far too many complicated trading restrictions and margin requirements that simply make zero sense. The IB platform is...

I wasn't aware of this. Could be a contributing factor in margin requirements. Thank you for that information, I'll check it out.

That's my next step I think, Tastytrade. Hopefully a much better broker than the shocking IB...