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This is another issue with IB. They may determine a spread is not "marketable" and not even bother sending it to the exchange, when in fact it is.

Was just about to post this as well. They migrated over to the BATS system, which caused some issues with GTC orders and a few other things.

Interesting the recording said it was locking the brokers par station. Brokers have an option in the SPX to route your spread directly to the exchanges electronic book (COB) or to a brokers workstation (PAR). Each broker is different, but orders above a certain size will go to PAR, and below...

Depends what you trade. Exchange fees for SPX are as high as .65, which TD doesn't pass along. Also if you are taking liquidity in equities there may be a another exchange fee as high as .85.

"We lose money on every account, but we plan to make it up in volume"

Exactly.

Portfolio margin is a risk based system. So if you are long a stock and hedged with a combo, your margin will be very low.

No statistics, but you can find them fairly easily. Just look for volume in deep options and see if its the same amount for puts and calls. Then go to time and sales and see if the trade took place at the same time. So for example I see volume of 250 in the Dec 2020 1000 calls, when I look at...

I wonder if the options price of .65 is all in or if they will add on exchange fees as well.

The spreads and the price of the individual options are meaningless. The market maker/trader is trading the box as a whole. He doesn't care about each leg of the box. Forget the individual legs.

No, they weren't created for trading boxes. Options aren't delisted once the have no/little value. For instance right now the SPX Dec 2020 100 puts are trading for .05. They don't have "no value" even though they are far out of the money. When the were first listed last year, they were...

The people trading the other side of this box don't care about open interest of an option. They (most likely market makers) know what their cost of capital is and the box will have an edge at a certain price for them.

Absolutely horrible advice.

It is almost never a good play to put a market order in for the opening. You are far better off putting a limit order in at a price you would like to buy or sell. The problem is opening quotes can be very wide, and you will generally be screwed. There are many different options exchanges out...

Suggest you email marketservices@cboe.com As @qwerty11 mentioned, new equity leaps came out last Monday. This email should be able to give you more information. On a side note, some new index leaps, the 2022's, such as the SPX should come out in December.

Raf, yes selling the call and buying stock would be essentially the same play, but easier to buy or sell the vertical and then exercise. You end up with the same position, but its easier to put on.

Not that familiar with ES option margin, but SPX margin without a PM account can be very high. Anytime you are short units or short a time spread, you are going to have high margin. Don't know of anyway around it.

The way it would work is you sell the spread on Thursday and then exercise your long options on Thursday night (a day before expiration). The process would be automatic after the close on Friday. If all of your short options are assigned, you would end up with no position and would be out...

Curious if anyone still does these dividend plays anymore. I see this Fridays Sept 50 SPY calls have a decent open interest, over 4000. If you sold the 50/55 call spread (4.98 bid) 100 times, and exercised your 55 call Thursday, you would only have to get 2 of the 100 you are short not...

Think of it as an entirely new position. The call spread is now gone. If someone said to you, hey El Ocho, I'm going to sell you some calls at parity and let you short the stock at the same price. You won't have to pay commission on this trade. You will receive a short stock rebate on your...