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This has nothing to do with vol or margin requirements for the spread. It only has to do with a potential assignment of stock that the account can not cover.

The problem is there is no way to know what you have been assigned on until the following day. So you are short the 1865 puts. What if the stock closes at 1864 but moves up after hours to 1866, or vice versa? The holder of your short puts has until 530pm et to decide whether to exercise or...

Call the OCC, I don't see a memo from them yet. https://www.theocc.com/

Id have to disagree with you on my response. OP asked "what price would I be short at" The effective price of his shorts is entirely dependent on what price he paid for each option. The amount he paid for each option will determine his basis on the entire position and would have to be known...

I wouldn't think its a wash sale problem. Similar to Ironchef's idea of the time spread. Both allow you to sell to close your long option, and open a different position. If you do it with a liquid enough option, you can do what you suggest and sell out your long leg by itself to be out of...

I run into this a lot when I need to get out of options that have no bid. Depending on the option, you may not be able to sell a vertical for even zero. The key is to pair it with a liquid option. So say you are long the BA Jan 2020 135 puts. There is no way you can sell these for even .01...

To clear up a few things for you. You don't exercise an option in the morning. Exercises must be submitted to the OCC by 430pm ct. (Most brokers will have an slightly earlier cutoff time) The OCC then aggregates them all and gives the information back to the clearing firms before midnight...

Op was talking about his assignment on Thursday, not Friday. This was an early assignment due to the SPY dividend.

All the Dec Spy calls below the 320 strike should have been exercised yesterday.

The person you spoke to is wrong, you will in fact owe the dividend. The key to knowing whether your call should be exercised is to look at the correspond put, if it is less then the dividend then you will most likely be assigned. This is because being long 1 put and being long 100 share of...

Since most brokers don't charge exercise fees anymore there are really only two reasons to sell out your option vs. letting it be exercised (in a cash settled index). 1, you will know the price you get for the option, vs relying on the index settlement value, 2, you will free up...

What you are missing is that your short 319 calls will be assigned. Actually the 320's should be exercised as well. The way you can tell this is by looking at the puts. The 319 puts are trading at .37. So if someone is long the 319 calls, if the exercise the calls and buy the puts for .37...

I have to say these are the types of posts that keep me coming back to Elitetrader. Thanks to @ironchef and @destriero. The first post got me to looking at these options which I wouldn't have to begin with. Made a little money with them as well. Then the posts on how others would play it I...

Everything will depend on what you paid for the options. So say you bought the stock at 1000 and the 1000 puts at $20, then sold the 950 call at $15 (your example above) and the stock closes at 960. You would make $20 on your puts (you paid 20 and they are now worth 40) You would make $5 on...

When you say "a long" UL at 1000 I assume you mean long 100 shares. If that's the case after expiration, you would be short 100 shares. Your short call would take away your long stock and your long put would give you the 100 short shares as both would expire in the money. Your profit/loss or...

I thought this was a great change. Makes much more sense doing it every 3 months rather than quarterly.

Thank you for posting this. Sure makes it appear he is either a fraud or has some other ulterior motives. Either way I think he should be banned from this forum. Making these types of claims, but refusing to work with IB to find an answer is beyond belief.

I am dumbfounded by your post. You say there were unauthorized trades in your account, but you couldn't wait more then 15 minutes before you hung up on IB? I'm assuming that is because they were winners. They would be able to tell you were and how the trades were placed. Were they for margin...

Dept of Justice looking into merger with Google

Just got an email from TD. They will start charging exchange fees up to .65 a contract for SPX options starting Jan 2, along with a few other index options such as the VIX, OEX, XEO, RUT. This had been a place where TD was cheaper than anyone, as their commissions were "all in". No more...