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Think of it this way. After he is assigned he can exercise his long calls as you suggest and be done with the position. He will have sold the call spread for the maximum amount and have no position. But if he doesn't, he is long calls and short stock. He can still exercise his calls at any...

Because this may not be the right decision. The OP said he has enough capital to hold the assigned stock. So if he is assigned on the short side of call spread, he is now short stock and long calls. This means he is synthetically long a put for free (of the same strike as his long call). He...

Generally an early assignment is not a bad thing if you have the capital to cover the stock. The exceptions would be if the assignment occurs just before a dividend (for short calls) and you are forced to pay it out. Also if the stock is hard to borrow and you are assigned on short calls, you...

Good point Sig, I missed that. I think you are probably right.

marketservices@cboe.com will give you the answer if you email them. Most likely those specific strikes were requested. You can even ask for specific strikes yourself through them.

You may want to consider opening a Portfolio Margin account. This will potentially reduce your margin requirements. It will require a bit more then 100k, I think IB is 110K for example.

Bob, is there a problem trading a customer account and an account with a BD at the same time?

Tom, First I would suggest that you take out your email from your last post, or simply edit it in a way it wont be easily readable to the bots. I am not really able to make a recommendation of how you should spend your money on hedging. So many factors, put spreads, deeper puts, selling calls...

Your options, zero volume and $5 wide markets, SPY, lots of volume, .05 wide markets in January 2020 options, SPX very tight as well and 10x the SPY.

Liquidity looks really bad here. I would suggest if you open any new positions you should do it in more liquid index options such as the SPX or SPY.

SPXU1 was created after SPXU reverse split 4 to 1. Normally an option represents 100 shares, but SPXU1 represents 25 shares of SPXU. If you are holding call options, yes they should go up if the Dow goes down to 6000, SPXU is a reverse levered index of the SPX.

I was a MM in there for 25 years. Back in the day it was the only game in town for indexes. The SPX was a much smaller product and more institutional. There were probably 400 people in the OEX pit at one time, the largest on the CBOE floor. All the other indexes came later. People were...

Except OEX which is American.

This is no longer the case and hasn't been for some time.

There are a number of reasons your 10 lot order may be filled in smaller increments. The most likely would be the pro-rata fill rules at an exchange. For example when your order is routed to an exchange, the DPM may be guaranteed a certain percent of the volume. The rest is split up based on...

The way I understand a Reg T account, is if you get a margin call you can either add money or liquidate the position (for which you get a strike). IB certainly has a right to minimize your position, but if they do it, they should do it in a responsible way. If there is not an immediate...

There is a lot of good things about IB, but their auto liquidation system is so customer unfriendly I would never recommend them for anything other than buying options. Your situation illustrates this perfectly. There was no greater risk when you were assigned, as you had options against the...

I can't answer about latency through IB, but IMO Emerald is not a good choice in terms of quality of fills. If you wanted a single exchange to route, CBOE would probably be your best choice in terms of fills.

If you saw this on time and sales, why do you assume that he sold 1500 and then bought 3000 and 1500? I think it is far more likely that he just put on a butterfly, where he bought 1500, sold 3000 and bought 1500. This would give him the 105/115/125 butterfly for 1.88

All this person has been doing is bumping 5 year old technology threads. Don't know why, very odd.