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This is very interesting. As a rule, I always get in and out the position as soon as possible, which means paying premium on ask and bid spread. I do have questions about this 'aggressive' trade. By your experience, what's the chance of a fill with spread of Ave2 - Ave1? a) Always b)...

The risk management is done for the $1000 invested in the naked short options, not the $10000 margin requirement. I don't see the difference of losing my shirt while having $5000 sit in my account instead of $10000 if I manage the $1000 REAL investment well. That's why I am going to move...

Yes, I know the risk of big wave. We are trading the risk. :) I just need a broker to help me to gain (hopefully) or lose more faster. :) I have managed the option shorting very well so far by controlling the risk. But the margin requirement leveled all my hard efforts. /Daniel

Hi all, I have an account in AmeriTrade which has margin requirement of about 30%+ of underlying when shorting the options. I am thinking about moving to IB which margin requirement is about 20%+ of underlying. Is there anyone knowing brokers have less margin maintenance requirement? My...

To White17, sorry for the typo. It's 17%, not 27%. It is quoted from 888options as from CBOE (see my comment above). It is a good news to hear someone from real world about the low chance of early exercise. In my opinion, you didn't get any early assignment as a daily trader is because you are a...

Thanks for the reply, spreadgod. You must be good at spread.:) When I constructed my strategy trading on options, I haven't incude the early assignment into my model because somewhere I have learned it is less than 1% chance. Later I searched around the web and figured out that the option...

Here are quotes from 888options: Q: How many options expire unexercised? How many are exercised? A: According to OCC statistics for year 2005 (for activity in customer and firm accounts), the breakdown is as follows: Closing Sales - 48% Exercised - 17% Unexercised at Expiration -...

Thanks for correction on American-style options and European-style options. You are right I am talking about the early assignment. For the reason of dividend day, it is avoidable if it is planned well. And most of the stocks I am dealing with don't pay dividend.:) For stock options such...

I am planning to start option strategy trading soon. But the option exercise assignment bothers me a lot. I can't put the option assignment into my strategy trading model. Once the option gets assigned, most likely my broker will liquidate my account. Even if the broker does not liquidate my...

Here is the comment from NYSE: Market-On-Close (MOC) Order A market order, which is to be executed in its entirety at the closing price, on the Exchange, of the stock named in the order, and if not so executed, is to be treated as cancelled. The term "at the close order'' shall also include a...

There would be no problem to adjust the timing of MKT order, like at 15:59:00 or even at 15:30:00. The problem with MOC order is that it may not be executed at all. That would be a big problem for non-full time trader. For people like me with full time job, I don't look at my account every...

Thanks for the reply. Yes, I understand that the normal MOC orders are only allowed to be entered before 15:40. The offsetting orders are up 16:00. I mean if it is a better idea to put a MKT order at 15:59:50 than put a MOC order. The MKT order will be executed for sure.

I am trying to use the MOC orders in my coming trades. But it is stated that it is NOT GUARANTEED to be executed. It scares me a lot because I don't want to see the stock positions the next day if I have submitted a MARKET orders. Here are questions about MOC orders: 1> What is the...