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I'm not using IB so can't help you.

RUT options is a good product to trade. You can usually get a fill close to the mid point. I'm not sure knowing the number of contracts other people trade is gonna help you in any way!? If you are concerned about the liquidity then unless you plan on trading huge size, I wouldn't worry about it.

Any option that is more than 0.01 ITM at expiration will be automatically exercised. If you don't want it to be exercised then you need to notify your broker prior to the cut off time.

Obviously, once the stock gets down to 80, and (if) you get assigned then, assuming you have enough buying power and desire (i.e. there is an opportunity cost of having you capital tied up) to hold the long stock, there is no harm in holding on to the position for a chance the stock bounces back up.

In the thread title you mention a diagonal, but the position you are describing is actually a calendar. A diagonal would have different strike prices in addition to different expirations. As to the risk, as it has been pointed out your risk is only $4. Assignment on your short Jan put results...

I believe thinkorswim's simulator fills at mid.

There is no hard rule on this as it really depends on the situation (i.e. a lot of factors can come into play here). Anyhow, the mid in your example is 12.65, so if I wanna buy then I would initially try @ 12.70. If that doesn't work then, assuming I'm ok with paying more, I would try at 12.80...

The difference between a simulator and real money is like night and day. Just because you always get filled at mid point on a simulator doesn't mean that you will get filled at mid point in real life. In fact, you are likely to have to pay slightly above the mid to get filled on a buy, and...

Thank you for the pointers, I will definitely make a note and follow them next time I post here!

It depends on what you mean by closing price, but generally, it is the last trade price, which can be a few seconds old or a few hours old, and if there were no trades between the last trade and the closing then the bid and ask can be significantly different from the last trade price as the...

You have compared the two strategies under only 1 possible scenario. I suggest you plug the two strategies into an option analysis software and play around with what happens to each position under different combinations of underlying price, time to expiration and volatility. As you try out...

Ditto.

Yes, delta is used to determine the hedge ratio, but since factors other than the stock price affect the option price, you also need to take into account other greeks. Delta hedging is not a set and forget method, you need to constantly rebalance the hedge to remain delta neutral.

Delta tells you the change in option price if the stock price changes by $1. There is no time frame attached to it.

I'm not sure I understand what you are asking. Greeks are instantaneous measures that can be calculated at any point in time, they are not calculated from actual stock price changes. Delta does NOT include vega and theta. The definition of delta is the change in option price given $1 change...

Well, your question was (and I quote): "What is managed futures funds?". This sounds like a basic question so why should anyone go beyond the basics!? Besides, if you would had researched them yourself prior to posting a question here then you would known the answer to what those companies...

See here.

SIPC covers securities not cash! If you want cash protection then you need to have a segregated account, which is usually the case when you trade exchange-traded products.

You mean $1 irrespective of the number of shares? If so then you wouldn't last long in the business.

Sure. The delta is neither constant not it is a discreet variable, it changes as the price of underlying changes, and gamma represents that change. So if currently the delta is 0.25 and gamma is 0.05, for example, then as the underlying gradually drops by $1 the delta would gradually drop by...