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Such circumstances may sometimes occur regarding DITM call options that are not exercised by retail customers (and therefore the MM has a practice of trading them just before ex-dividend dates), isn't it? My question was if there is a similar situation regarding DITM puts, and if not -- why is...

Is it possible that an equity put which is deeply in-the-money at expiration will not be exercised by the holder (for any reason)? I am short such a put and I want to know if there is a chance that I will not be assigned on it, so that I should keep the position until expiration and not close it...

Interesting. Do you have to turn this function on through their platform or it applies automatically when you place any spread order (whether it is a vertical, an iron condor, etc.)? How do they calculate how much they saved you (is it the difference from the current mid price)? Also, if you...

Hello, I wonder which execution method can result in better fills regarding vertical spreads (fills below the current mid price) -- placing a vertical spread order or trying to legging into the spreads by trading the individual legs separately? I would assume that by trying to legging into...

What are P/B levels? (I assume you don't refer to price to book value ratio)

Another issue you may consider is that by going long or short the stock your margin requirements will be increased substantially, so that it may materially reduce the return on your capital.

Would you prefer being short butterfly instead of being long iron butterfly? Both strategies have similar payouts and capital requirements so I wonder what are the reasons to favor one over the other.

Thanks for sharing. Great interview...

Sure, my pleasure.

It's probably a dividend related issue. See the following post: http://www.elitetrader.com/vb/showthread.php?s=&threadid=233080

Thanks for the explanation. I completely agree with you regarding the "binary trade" concept as you stated it, which can also be viewed as a "built-in" stop-loss. To answer your question, I asked my stop-loss question regarding a directional bullish strategy on stocks either through simple...

I understand that in such situation my broker will not make the extra money but I didn't understand how can I capture this extra income. Could you explain?

Thanks for the explanation, very interesting. I assume that you create collars only if the UL goes up so that you are able to buy cheap puts at the price that you would place a stop-loss order on the stock and you are not creating an upfront collar position (and thereby limiting your proft...

I wondered if anybody here uses stop-loss orders in his options trading and if so how do you decide to place it. I can understand the reason for stop-loss orders in stocks trading but I assume that stop-loss orders in options trading may be futile, since an option is a leveraged instrument...

Interesting video and analogy :)

Actually almost every time when I place a single order at the current mid it becomes the new bid immediately thereafter (so the mid jumps) and I assume it can't be that every time the original mid point was way below the market makers' value as you suggested. And since it becomes the new bid, it...

Your logic sounds reasonable, but in fact when I place a single order at the mid price (especially regarding options with wide bid/ask spreads) the limit jumps right after I submit the order. For example, if the bid is 1.00 and the ask is 2.00 before I place the order, and I want to trade at...

I am asking which order has better chances over the other (if any) of getting filled more quickly and at the mid price: a spread order (such as a vertical spread) or a single order (only call option, not as part of a spread order)? I hope now its clear. Basically I want to understand if...

I didn't ask about legging into spreads. Assuming that I can acheive my profit targets by using either spreads or single orders (without legging in) I want to understand which one, spread order as such or single order as such, has better chances over the other of getting filled more quickly and...

And in this regard the covered call or the short put may be preferable? In both of them you may be exposed to the pin risk.