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Index options are cash-settled so you pay/receive the difference between settlement and strike in cash. That is, each point is worth $100 so if you are short 1300 put and the settlement value is 1299, then your short put expires 1 point ITM, which means you pay $100 per contract and since you...

Options on S&P futures are American-style. Options on cash index (SPX) are actually European-style. In fact all index options are European-style, except OEX.

I've been on this forum for quite some time and I never pay attention to ratings, I don't even know how to rate threads or have any desire to do so. I've seen a lot of people come and go and I most definitely don't need some stars to tell me which thread or poster is good and which one is...

It doesn't matter whether it is ITM, ATM or OTM. Synthetics always use the same strike(s). For example, say the stock is at 50. If you have a short 60 put then it is ITM. A synthetic position would be long stock + short 60 call. In other words, an ITM short put is equivalent to an OTM...

A short put is equivalent to a covered call position at the same strike (i.e. long stock and short call with the same strike price as the put).

If it's a naked short call I strongly suggest that you close it out right away and not make another option trade until you gain some knowledge. If you don't know what you are doing then you have no business selling a naked call, let alone one with 6 months to expiration. If you insist on...

Index options are cash-settled, so if you are assigned on an option (early or at expiration) you will have to pay the difference between the settlement and strike price in cash. So, for example, if you are assigned on a SPX option that is 10 points in-the-money you will be required to pay $1,000...

Most index options are European-style so you don't have to worry about early assignment. However some are not, namely OEX, which has American-style options and can be exercised early. Before making any live trades in any instrument you should review contract specifications, which have all the...

Another way of doing the same thing is simply buying a 1300 call and selling a 1350 call, or alternatively selling a 1350 put and buying a 1300 put.

Generally, I get out if I can book about 80-90% of the profit, however in certain situations I may get out earlier. It really depends on the trade. I presume you got hit by earnings. In this case, unless I actually wanted to be in a position during the announcement, I would've closed out...

Using a market order is asking for trouble! If you really want to get in/out then you should use a marketable limit order - i.e. if you are looking to buy an option, which is 1.90 offered then you should use a limit order with a 1.90 limit. This way you would get filled @ market without the risk...

Your calculation is wrong. You make $1,000 on the short stock. You lose $600 on the long call that expires worthless. You lose $300 on the short put. The put expires 5 points ITM ($500), but your intial credit is $200, so net loss is $300. Overall: 1,000-600-300=100 profit, but most...

An index doesn't pay a dividend, only the constituent companies do. So, by definition, you cannot have a single date and amount for an index.

The OP is buying the call not selling it.

Dividends and borrow rate are not risks, but two pieces of information you are most likely missing that make this look like free money to you!

Ditto.

No! To get the dividend you need to own the actual stock, and to lose (i.e. pay) the dividend you need to be short the actual stock. However, as others have mentioned dividends are priced into options.

Whatever you say, mate!

Credit spreads can only be done in a margin account as they require a margin so I don't know how you can have a cash account.

No, you don't need margin to buy an option, but, as I said, option trading is done in a margin account, period.