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are you short stock when you sell the puts?

actually, just as an thought experiment, i am trying to think of a scenario where exercise might not happen: an officer of a public company buys protective puts during a lock-up period in which he is prohibited from selling stock. the stock tanks and now he has a boatload of synthetic...

i'm speechless.

if you have written american-style options that are now in-the-money (ITM) and trading at or below parity -- you can expect early assignment. holders of ITM calls typically exercise early to capture a dividend. holders if ITM puts typically exercise early to eliminate cost of carry. ask...

hehe

http://www.optionsclearing.com/publications/risks/riskstoc.pdf

http://www.tradersaccounting.com/faq_answers.php?id=32 not the irs obviously

options on SPY get 60/40 tax treatment, same as SPX.

DR@TOS told me that they hadn't quite worked out a few outstanding issues, such as drawdowns below the 100k PM threshold and some fund segregation issues. that was about 2 weeks ago. i'm slated for PM also.

Wow, Penson (PNSN) got *eviscerated* today. 25% haircut. I wonder if I should be worried about it.

The ethics of cheating on the test is really the point.

It's taken directly from a Portfolio Margin qualification test from a popular broker. Question #12 in fact. The analogy was not DELTA : PRICE, but DELTA : THEORETICAL PRICE. So, did they give you Portfolio Margin?

he's long 5 50/60 call verticals with 5 extra long 50 calls: +10 50C -5 60C a "conventional" ratio spread (ShortMore) would be: +5 50C -10 60C and a "conventional" backspread (LongMore) would be the reverse: -5 50C +10 60C

any word from tos on futures options?

I really wish TOS would offer options on futures. That's *really* lacking on their otherwise excellent platform.

and they don't even consider insurance costs in the cpi. medical insurance is spiralling up at an alarming rate. and have you checked your home owners insurance lately? and yet you hear that magic phrase "excluding food and energy" inflation is very low. i think the cpi excludes about 80%...

I think GOOG is taking the Buffet stance on splitting.

I'm fairly sure he meant a reverse calendar -- buying the front month, selling the out month, same strike. It's a +gamma, -vega, "vol-crush" position.

http://www.sec.gov/news/press/2007/2007-10.htm at the bottom is the list of stocks with options currently trading in penny increments.

ES is gonna rip up thru 1482.75 by close like a hot knife on butter.