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On the morning the VIX settles, the CBOE will post in real time the current expected opening price of the SPX options that will make up the VIX settlement (usually starting at about 8am ct.) http://cfe.cboe.com/data/EOSpage.aspx If you mark your order OPG (opening only) you will be able to...

Vix premium seems cheap going into settlement tomorrow. I am long the 15 puts for .10 and the 16 calls for .20 Seems like a good play for tomorrow morning.

As someone who trades through both a prop firm and a portfolio margin account, mainly SPX options, here are the issues you will face. In a prop firm, your SPX options (other than weeklies) will be routed through a broker on the floor. In a customer account, the orders go directly in the...

I think you would be better off just trading verticals on the main exchanges. You would be giving up less edge and could replicate binaries risk profile very well. For example say you sold the 1850 binary put on the SPX 10 times for .20. Your risk would be .80 or $800 and your profit...

You can get quotes through the CBOE. I get them through my trading platform, WEX and REDI.

Unfortunately TOS does not allow trading in the BVZ or BSZ. They did at one time, but they were creating problems for their risk department. Their risk programs were having problems identifying risk of loss as only $1, so they stopped allowing their traders have access to them.

No, still traded at the CBOE, but very little volume. Still some opportunity every now and then. I actually have the entire open interest in the VIX Binaries, (BVZ)

Don't say never. Remember this also creates opportunities as well.

Does IB show the exchanges COB?

Check out Option City. A friend is using it to stream grains and is happy with it.

Agreed that the "inside" quote is usually very tight. The problem is the fair value can be hidden. For example a quote may be 18-20 with fair value at 19, but suppose someone puts an 18.90 bid in. Fair value is still 19 but the mid point would change to 19.45. If you then paid the mid point...

Yes, very confusing. SPXW (Weekly) Afternoon Settlement Hybrid System (Electronic and Pit traded) many people send quotes electronically SPXQ (Quarterly) Afternoon Settlement, Pit Traded, One "group" sends quotes into system SPX regular. Morning settle, Pit traded, one "group" sends quotes...

Sorry Richard, you are wrong here. ESH4 settles at the same price as the SPX 1893.30 today. (these are not quarterly options, which do have a pm settlement)

The March ES future will settle at the same price as the index settlement. Perhaps they are showing the last price traded? This is about 14 points higher than you would have thought it would be. I learned my lesson many years ago about the risk of this settlement.

Wow! That's the craziest mark I've seen in a long time. I learned a long time ago never be short options going into the morning mark. The print is based on the opening prices of the SPX stocks, so the June ES futures don't need to be there, but still wow! You can trade the expiring options...

Yes, the CBOE requires a min. of .05 in the individual VIX options (.10 on options over 3.00) but they will allow you to trade any spread in .01 increments. The VIX futures are the same. .05 increments but you can trade the futures time spread in pennies.

No you are wrong. I posted an option strategy that would accomplish his goal exactly with minimal cost and no risk. The problem with your answer is you will have stock movement risk from the point you sell the stock to the point you buy it.

Not sure if you are directing this question to me, but if you buy the ATM call and Sell the ATM put and then sell your stock out (this spread is called a reversal and can be entered as one trade) you will then be synthetically long your stock, (without your stock). This is the same as being...

Since GMCR close under 115, you will not have your calls auto exercised. It would have to have closed above 115 for this to happen. Doesn't matter where the stock trades after hours. If you were short the options, it would be a different story. You would then potentially have the risk of...

Buy an at the money call, sell the same strike put and sell your stock out. You will then be synthetically long the stock. You can then reverse the position after the dividend or simply let the option position exercise back into stock at expiration.