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I am not more disciplined than the vast majority of people that leave overnight GTC limit orders. Selling puts with a view to own at a lower price is just another way of doing so. I am guessing that this is the concept many are finding challenging: I do not trade options but only sell puts to...

Why is the jury out? Why pay commission twice if they are expiring worthless?

Interesting. I have always discounted option price move between sale price (when selling puts) and exercise date. I see them as binary events - they are either exercised or not. I have so far never had any of my puts exercised...they always expire worthless.

LOL. Thanks for trying :). Why is this stuff so murky?

AND we are in the clear that @ffs1001 's calculation of 50,147+45,589 is erroneous? J

Thank you! So 1) Maintenance Margin in my first question = Equity. 2) Maintenance Margin is not fixed and varies intra-day 3) Nominator (Cash flow) is set on trade date (day I sell a put). ROE/ROI changes daily as Margin changes daily. 4) IB does black magic (nothing on their website or help...

Again. Risk. Agreed. Say no investigation, and puts expire worthless. What equity was allocated to that trade?

A different angle of asking exactly the same question: 2 out options for 2 stocks of about same market cap and different volatilities. Way out of the money, strike 50% away from current price. Premium is exactly the same. One requires twice more maintenance margin than the other. I have such...

I am not a trader in the sense that I have no interest in closing far OTM puts before they expiry. Your lingo is correct: nominator is cash flow and ROE is ROI. Question is where to find the locked away (or assigned) equity for a given option trade in TWS. Sorry everyone, I know that you all...

Very true. But I am trying to figure out how much of my equity is being locked away and not available to use for other trades. Everyone should be interested in that no?

I use the underlying price to calculate risk/coverage/headroom/margin of safety. Let me ask my question differently: I sell a put waaaay out of the money. Say 90 per cent away from current stock proce. I would like to be able to compare the return on equity allocated to this options to...

That was my initial understanding but that is called Maintenance Margin. How much of that is borrow and how much is equity?

I did say i was happy owning the underlying :) Your ROI calc is a bit confusing, where is the equity component? Margin only matters in terms of cost of funding, right?

I am new to all this... Say I sell a short dated put and do not mind owning the underlying at the strike price. An example is this TSLA put, where I am OK owning TSLA shares @ 1,505. Now say that this option expires unexercised (price never reached the strike) - am I right that my total P&L...

And have you considered ticking "liquidate last" for your options, and leaving more liquid instruments to liquidate first in case of a margin call?

Does IB provide any heads-up of account deficiency if options are exercised prior to auto-liquidation? Is there an alert that one can set-up to avoid the surprise? (chat has just confirmed to me that there is no way I can pull margin info in excel with the DDE api)

Is your non displayed quantity getting filled?

Thanks for that - what about the hidden part of an Iceberg limit order?

All my hidden option orders are showing up on TWS with a dark blue status (vs green for stocks) in the activity window. Are hidden orders permissible/allowed by the exchanges? will they get filled if status is dark blue? Thanks

Is there a software out there that allows traders to place orders at multiple brokers simultaneously, namely shcwab and IB?