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So typically with an all cash takeover the options are all accelerated to the takeover date and you are paid in cash for in the money options and out of the moneys are expired. In a takeover with stock your options will be adjusted to the new company and continue to trade typically. As...

This really seems crazy. Would love to see a response from Tradezero.

Was this over the weekend as well?

OEX

Back in the day where MM's all traded together in one pit, cutting someone's market by a tick could get you punched in the face. Definitely didn't go over well. But today I don't necessarily agree. We are now living in an age of HFT buying order flow in stock and literally trading .0001 below...

Most MM's will "join" your bid/offer if you improve on theirs. So if the market is 2.25 x 2.45 200 up, and you offer at 2.44 for a 1 lot, suddenly the new market is 2.25 x 2.44 , 200x 201. With multiple exchanges those offers could be the aggregate size on all the exchanges, so you would not be...

Some stock options are allowed to trade in penny increments under 3 (called the penny pilot program). Those in this program still require .05 increments over 3. There are a few exceptions to the over 3 rule, such as SPY. BABA does allow penny increments under 3, the problem is the call you...

After you put your order in, do you still see the same offer, or does your order become the new bid?

There are 16 (maybe more now?) options exchanges. If there is an offer at one exchange and you are paying the offer, but the order is sent to another exchange, you might not necessarily get filled. So say the offer is at the PHLX exchange, but your broker routes it to the EDGX exchange and you...

An all stock deal. Interesting. Wonder if that's good or bad for TD shareholders.

Try directing the spread to the CBOE. You will generally get the best fill here.

If you are mainly trading SPX you are probably better off with TD as they don't pass on the extra exchange fees (up to .65). There is no rebate for adding liquidity here either. Fills should be the same with either IB or TD in the SPX. This is a single listed product so orders are sent into...

If you want to stay with IB and have the money, ($110,000) open a PM account and this will solve all three of the issues you mentioned. If you are assigned in a PM account and have options against the assigned stock, your margin requirement will be minimal. You will also get relief on short...

So if you are assigned on an option and as a result have a margin call that you can't meet, almost all the time you are better off doing other things then exercising your long option. You should simply buy/sell your stock and sell your long option. This will get you out of your position...

You have to understand there is no way to know the max loss in a short time spread. In your example you are short an SPX weekly call spread, the Dec 13 /Dec 20 3090 for 6.50 (about where it is now. On Dec 12 Trump announces he will make a major announcement on Dec 14th concerning a deal with...

First, being short a time spread produces a much higher margin than being long one. There is not a theoretical max loss as you suggest. This is the same with all brokers, not just IB. If you want to greatly reduce your margin on a short time spread, you will need a Portfolio margin account...

Even if an options exchanges did support hidden orders (which I don't believe they do) it wouldn't help you as there are so many exchanges. So if you had an hidden offer on one exchange and a bid appeared on any of the other 15? exchanges, you would not only pay that exchanges exchange fee...

Yes, TD is "all in" with their .65 rate (accept for 1-2 cents reg fee). This will end up being far cheaper than IB if you are trading products like SPX or VIX which can have exchange fees up to .65 a contract, or if you are taking liquidity on an exchange that charges for that. They also allow...

When you enter an option spread it is generally routed to a specific exchanges COB (complex order book). There is no guarantee against trade throughs on spreads from another exchange, so if you are at .50 on the CBOE, it may trade at .55 on the PHLX. You may or may not be first in line on that...

As of today, there are new codes for time and sales for option contracts. These new codes are much more detailed. You can now tell how the order was filled, such as a floor trade, auction, etc. Here is the memo from OPRA. Page 20 has the new detailed codes...