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My positions are always netted out the next day. Marking buy (or sell) to open or close has never seemed to matter. The one exception has been for OEX options, where it is imperative that they are marked correctly, as it can affect the exercise.

You are synthetically short the 135 calls as if you buy them you have no risk in the position. Without these calls, if SPY goes beyond 135, you will lose on your short stock and no longer gain on your short puts. As I posted earlier, any money you pay in a dividend will be essentially...

If you want to exit the position, put an order in as a spread. Although the quoted market for these options are fairly wide, the inside market (especially as a spread) will be fairly tight. You should be filled withing a couple cents of the midpoint of the option. If you are concerned about...

SPX weeklies are already traded on the CBOE's hybrid system, unlike the the regular SPX options. They are PM settled.

SEC finally approves SPX pm settled options to trade on C2. http://ir.cboe.com/releasedetail.cfm?ReleaseID=603185

Really interesting stock to look at. Thanks to Deltahedge for posting. It looks like the options are pricing the stock at less than 10cents after the Sept 16 meeting. High volume on the 1 and .50 puts so I tend to believe that is were it is heading. If this is the case, why the heck is it...

With the stock at .75, the 1 calls that he is buying are out of the money. If he exercised them, he would be buying the stock at 1.

What you are missing is that this is a very hard to borrow stock. If you sell these calls, there is a good chance you will be assigned (they are trading with no premium). What I like better is selling the .50/1.00 Oct put spread for .48. Only risking .02.

Often for a hard to borrow stock this is a much better way for someone to "buy" the stock. You sell the put (as you did) and if you want to exactly replicate being long the stock, you buy the call of the same strike. The "hard to borrow" value is written into the options that you can take...

Absolutely agree, but the broker may have a policy of auto liquidation if the account has negative equity. One would hope there would be a manual review of the positions involved.

Here's how it can happen. You are long an oex 500 put and short the 495 put. (This is a single listed product so easier to happen) The 500 put market on the close is .10 -.30. The market on the 495 put is 0 - 5.00 (the market makers have pulled their standard quotes at the end of the day to...

You may also want to look at the SPX weekly options. They are traded electronically (monthlies are traded in the pit) and have pretty tight markets. Since they are 10x the size of the SPY's, commissions will be less.

HuH? How is there any risk? If the OP is assigned on his short call leg (call vertical), he will have short stock against his long call. If he is assigned on short put leg (long put spread) he will be long stock against his long put. In either postion he will be synthetically long either a...

Here is a link to the the CBOE rules talking about this subject http://cchwallstreet.com/CBOETools/PlatformViewer.asp?searched=1&selectednode=chp%5F1%5F1%5F6%5F2%5F8&CiRestriction=obvious+error&manual=%2Fcboe%2Frules%2Fcboe%2Drules%2F Basically a trade can be busted if it trades to far...

Not necessarily. The best way to tell if a call should be exercised for a dividend, is by looking at the corresponding put and the cost of carry of the stock. So if the put of the same strike as your call is going for .20 and the dividend is a .80, it would be a good exercise as long as the...

Very recently opened an account at TOS and all the sheets I get are from Penson. Check to open account was made out to Penson, so I dont think they are self clearing.

Would think or swim be considered an IB for Penson?

Lol, Yes. Does TOS give you the option of sending a spread to the COB of a certain exchange or do they make that decision for you?

Maybe I misunderstood. The OP entered a spread order that he felt should have been filled by simply trading on the best quoted markets in the individual options. If this was the case and these best quoted markets were on the CBOE, if the spread was entered into the CBOE COB, it would...

If the spread is sent directly into the COB on the CBOE, and it can be filled on the quoted markets on that exchange, it will auto-trade with the given markets. This is not the case if you see the best bid or offer on another exchange.