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The broker is not the one writing contracts that you buy. That would be a serious conflict of interest anyhow..

A little decline and everyone gets their panties in a bunch like usual :) Dont worry, the market will steadily continue it's incline as it has since the beginning of the industrial revolution. It might experience some bear periods here and there, like in 2008, but overally it's going up. No...

Because that's the entire premise of OPs post...he asked what would happen if he was assigned

Fair enough, but even if it's a debit spread that's in profit, I believe your margin would increase as you're assigned the shares. What if you're assigned with just like 5 cent profit on the spread...and now you're given thousands of shares instead that you have to hold.

If your long hedge expires OTM and you're exercised on your short ITMs, you're left holding much more risk than you had with your option spread, so your margin should increase in proportion to this. Im not sure how brokers handle it but with IB I think you'd be auto liquidated.

You're screwed.

Pay attention. That wasn't the point at all. I feel like I'm replying to some robot posting randomized comments from zerohedge or the WSJ op ed.

Yeah, the mixed-market gift economies of absolutely all successful ancient civilizations are great examples of just that. Especially the huge governments and welfare states of the Mongol empire, the Persian empire, the Roman empire and the Ottoman empire. True free market capitalism right there...

Read my post in it's entirety again. As explained, even the free market prefers fractional banking. Where is your God now?

I've read about the The Wörgl Experiment before, and all it does is prove the gold bugs dead wrong. I mean, you have towns that issued their own currency with a negative interest rate attached to it, which meant it circulated extremely fast because nobody wanted to hold it long-term unlike the...

You people still dont get that the purpose and behavior of money is completely different from that of goods. Yet you keep comparing the two... For one, hoarding of capital or goods have vastly different outcomes than hoarding money. We've seen the result of the latter before, and it ain't...

Oh, the supermarket thing again? LOL. I'm sure bananas and tootsie rolls are great at hedging your USD exposure

Way to move the goalpost. But even if you are being sarcastic, the above is generally correct. Look at the yield on 10-year TIPS, look at the Euribor. Or NGDP vs credit. Or gold even, which is now back to 2010 levels. USD is stable yet equities are increasing. So where is your inflation? Tell...

You're confusing face value with purchasing power again. The fact that it's face value has decreased has no relevancy to it's purchasing power. Only if you use it as a store of value, would your argument have any merit, and I've been through that many times now.

I'm not sure what you mean by "first to use". It's not like the fed is buying their groceries at Walmart, so how is that relevant? Also when the govt wants to spend, they most certainly do not start counting tax receipts, nor do they call China or the Treasury. Auctions in the US do not fail by...

It doesn't matter because they function the exact same way as long as it's fractional. Pegging the entire world to gold sounds like a great idea to create a huge correlated mess. It's much better that countries be left to their own to choose and print their own currencies as they see fit, and...

Just because you want things to be priced in gold don't mean the world wants the same. Gold-bugs are not the center of the universe, nor do you know everyones wants and wishes. Most people are fine receiving their wages in fiat, because they can easily be re-negotiated should one feel the...

Fiat has no intrinsic value so it makes no sense whatsoever to compare it to gold. The real value of fiat lies in the purchasing power it gives. Gold on the contrary is a commodity. It's price can easily be explained from fundamentals. Inflation hedge? Then why did it decline from 1800 to 1250...

Again, the reference price for any currency is not "items", gold, oil, gas prices or anything else you can think of. The reference price of a currency, is other currencies, plain and simple. Also in 1913 you would also have a much lower wage.

The "free market" is a nonsense utopian dreamworld concept that will never come into existance anywhere anyways. The entire concept is based on a nonsensical rationalist approach rather than an empirical approach, that includes a bunch of high-thinking 'intellectuals', who have never had a...