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Most options stop trading at 4pm et on expiration day (except half days before holidays). Some options, such as SPY will continue to trade until 415pm. The holder of the option will then have up to 530pm (or earlier depending on the broker) to decide whether to exercise or not exercise his...

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VIX options as well. IB is the only retail broker that I know that allows access during the full session.

SPX options also trade from 2am to 815am ct.

The CBOE charges between .45 and .65 for SPX (depending on the price of the option and whether it is in the monthly or weekly. SPX monthly above 1 is the most expensive...

So typically (and RH certainly isn't typical) you should receive interest on the credit balance of your account. So if you have $100,000 in your account and you sell 10 puts for $30 each you now have a credit balance of $130,000 and that is the amount you would receive interest on. Say your...

There is a chance you will be assigned even if your short legs are out of the money. If that happens and the stock moves 100 points on Monday, you would be out (or possibly make) $10,000 for each 1 lot you were assigned on. That's why you should care.

If you sold it for 3, your max loss is 7. That's because if it goes way up or down, your short put/call spread would be worth 10. You took in a 3 dollar credit, so 10 -3 is 7. Note that even if your short options are out of the money at expiration today, they still can be exercised by the...

530pm et, but most brokers will have an earlier cut off time to allow them to notify the OCC. My broker was 5pm, with best efforts until 530, but just changed to 515pm et.

There is no reason to hold these spreads to expiration. Close them out before the end of expiration day and you will not have any assignment risk. If you hold through expiration, you have the risk of being assigned on your short leg even if it is out of the money or not assigned on your short...

Certainly some advantages, (60/40 tax and no early exercise) but the main problem as been the liquidity has not been as good as SPY, but that has been improving. Also, there are extra exchange fees as it is single listed at the CBOE.

Good point. Anything else other than the regular monthly expirations are considered SPXW and expire in the afternoon, including EOM's.

There are both SPX monthly options (SPX) that expire on tomorrow mornings opening SPX print and SPX weekly options (SPXW) which are listed for every Monday, Wednesday and Friday that expire on tomorrow afternoons close.

Not sure how other exchanges COB's (the electronic book for option spreads) work, but with the CBOE MM's can't leave resting orders in the COB, they can only interact with one when a customer places an order in. So when a customer puts a spread order in the COB at a "good price" an electronic...

What would happen in the past, which would lead to crazy VIX prints, was that a firm or firms would enter huge buy or sell orders in the SPX options, especially the out of the moneys, to influence the VIX settlement. So an out of the money put option that should be .30-.35 would have a firm...

Not sure how many people this will affect, but the CBOE has a new settlement procedure for the VIX. The VIX settlement price is based on the opening price of certain SPX options. In the past retail customers could participate in this SPX opening process, which gave retail customers a nice...

What I have found also is that size matters in illiquid options. I might be filled on 10 separate 1 lot spreads but if I put a 10 lot spread in I wont be filled (even at a worse price).

Where a option is "marked" has zero relevance to a market maker, he will trade based on his theoretical values. When you are trading spreads in markets with wide bid/ask spreads, do not use market orders. Start with a 1 lot spread, at a price you think would be a great fill for yourself and...

With calls you generally will only be assigned early when there is little or no premium AND there is an upcoming dividend OR the stock is hard to borrow. If you are assigned without these situations, it is not necessarily a bad thing. You will the be long your other call (if it was a time...

Lots of changes over the years in the way SPX orders (not SPXW) are filled. They made another change about a year ago that made it more electronic and allowed quoting by more market makers, but took away customer priority. With that change if you see a quote, you can trade electronically...