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Although IB is good in many ways, they often take forever to implement a change even when they agree that it is an excellent suggestion. It's a shame that they are so unresponsive to the suggestions of knowledgeable traders.

Hi 1245, Are you saying that unless the midpoint is determined by the MM, you can't consider it a true midpoint? i.e. if a non MM order changes the midpoint, the apparent midpoint is just an illusion. Also, what percentage away from midpoint generally becomes attractive the the MMs? Thanks.

someone please PM me atticus' new nick. I'm curious. Thanks.

Call them and ask.

FSU is right, if you don't give accurate details of the trade it is very difficult to get good advice. It sounds like you are learning that spreads play out much differently than naked stocks or options. You might sign up for a free trial of Think or Swim, plug your trade into their thinkDesktop...

Well put. Accurately determining direction for a meaningful move is the strongest edge you can ever master.

Depends how you feel about the trade. If you were only trying to sell calls and sell puts at approximately the same time, you should exit the trade and take your losses. Also, your strategy seems flawed (and way too risky) from the beginning. Why not buy butterflies instead of what you had...

Is the ISE Complex Order Book available to the public anywhere?

I'm not exactly sure what you are asking, but assignment won't happen during the day. It will happen after the close and you will find out about it the next morning. If you close out eod, you won't have to worry about assignment.

Hi Maverick, Can you please explain in more detail how this is free money? Are you saying because the algo got a sale at the ask rather than at fair value of 2.20 by picking it off super fast milliseconds before the option bid ask had to change to 2.15 at 2.25 to accommodate the new price of...

Suppose it is.

Hi, Does anyone know what the minimum increment that will be posted on the NBBO? It seems to be pennies until 3.00 and then five cent increments. The problem is that if you send an order in to sell at $8.49 it doesn't show on the Level 2 and sometimes 8.50 gets hit a number of times and...

Although options afford higher leverage, you are not obligated to use it. The same holds true for futures. For the sophisticated trader, though, it is nice to have access to and can greatly enhance your profit potential.

I agree. I think it is best to close naked short options which are anywhere close to ITM before expiry.

You will need to check with your broker to determine their margin requirements and assignment policies.

Thanks for the answers. So if I sell a box spread at a price higher than the difference between the strike prices, and I do get assigned early on the short call of the box spread, what should I do immediately to curtail any possible losses? Also, what are the losses limited to considering I...

Hi, Can someone please explain the risks of a box spread with regards to dividends or early assignment? Thanks.

Thanks as usual 1245. Does that mean if I put in an order to sell contracts at 5.24 on a 5.15 x 5.25 bid ask that my order will not show on the NBBO?

You will make a lot more in commissions from me due to this change.

Hi, Can anyone point me to the official rules for option pricing? I am interested in what is allowed to be posted to the NBBO with penny priced options as the price moves up through the levels. Thanks.