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As you have worked out - most of the graphs show what happens at expiration.....as to what happens in reality prior to this many strategies dont look as enticing. The problem you have here is that of (for want of a better term )- relative decay , and try and think about this in conceptual...

So your advice is - forget process, skills, ability, patience etc; etc;.....just put yourself in the right place in the right time, shoot for the moon recognize that if it works it was largely down to luck and that the real skill is in recognizing that and then exiting while you can? :)...

it also depends on where along the time till expiry curve you are at.

haven't you already determined this by showing in your testing or historical trading that $100 is where most trades for this strategy should be exited? In which case, the only potential profit is anything over $100 should you choose to run it further? Otherwise, pulling out numbers like...

LOL - that would be nice, for certain 'reminders' Or people could learn how instruments work before hopping behind the wheel. Or ensure that there are checks and balances to minimise fat finger errors, and they are turned on, that they understand liquiidty and at market trade issues etc...

If I read that correct... you spend 56c to buy a spread that at most would be worth 50c. (??) Expiry is Jan 3 2014 I assume you were buying back a spread that you were short. If this is the case...the best thing to do in these cases is know what it costs to unwind the spread in brokerage...

def - thats why I did not say it was necessarily done by Interactive Brokers.....but I have seen some providers do it this way. Sorry if it may be interpreted as such. On that note, as others have asked - why then is rehypothecation done by Interactive Brokers for those clients who dont use...

For all those wondering why re-hypothecation occurs.... here is a suggestion in an example: It is an example only I am not saying its right or wrong :)) lets say you have $100 in a broker account and purchase $40 worth of stock. Traditionally you would own the stock and maybe get interest on...