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Spreads in the SPX are usually very tight, depending on the type of spread. A front month vertical would generally be quoted size up about .10 around fair value and could probably be traded for as little as .05 around fair value. Other spreads could be much wider, such as a long dated time...

The SPX options (along with the VIX options) actually start trading at 2am ct. They trade until 815am ct and stop for 15 mins.

Ellevers, My $1 commission is all in with the extra exchange fees that are charged with SPX. I think you all are right that it is not worth the cost. I am just amazed that someone would sell a butterfly for zero. These are spreads that are filled in the COB as spreads too. It is hard to...

Weekly SPX options are now offered through December

So every week there are certain butterflies that are offered at zero in the SPX. Today it was the SPX Aug 2000/1995/1990. At the time it was about 50 points out of the money and it expires tomorrow morning. The only cost/risk is the commissions, which for me is about 4 cents (1 dollar per...

The risk of being long or short a box in the SPY would include pin risk at expiration. Here if the index settles around a strike that you are short, there is a possibility that you may not be assigned even if the option is slightly in the money. This would leave you with a potential stock...

The SPX (including weekly) and VIX options do trade on an early session from 2 to 815am ct. Actually pretty decent markets, but many brokers don't offer access.

In one instance OPG orders are required. In the SPX, everyone is allowed to participate in the opening of the SPX options on VIX settlement morning (which will be tomorrow). The settlement price of the VIX will be based on the opening price of the July SPX options. In order to guarantee...

Couldn't have said it better! Although if a stock is hard to borrow, you will be better off sell the put instead of a covered call.

Lol, Hearsay and not fact. You can get the facts from your own brokers I said each broker will have their own deadlines. My experiences with my brokers are, Think or Swim, anything after 450pm est is "best efforts." Apex clearing also is 5pm est and "best efforts" after that. With my...

The 530pm est is an OCC rule. Each broker will have a different time when they will require exercise instructions. Most seem to want the information by 5pm in order to give them enough time to notify the OCC.

On expiration Friday, owners of options have until 530pm(est) to decide whether to exercise them or not. If Twitter was trading at 36.86 after hours, anyone holding the 37 put could buy it there and then exercise the 37 put and lock in .14, much better than letting it expire worthless. I have...

It doesn't matter what price you buy the stock at, you will be synthetically short the put that is the same strike as the call you sold.

You are far better off simply selling out of the call spread then turning it into a box by buying a put spread. If you turn it into a box you will have additional risk (pin risk at expiration) and costs (exercise/assignment) at expiration.

If you buy the equivalent put vertical you will be perfectly hedged, with all your profit/loss locked in. For example if you have the 135/145 call spread, you would buy the 145/135 put spread with the same expiration. You will then have a "box". Your only risk if you leave this on to...

The answer would be "A" If you are long options, you are in the drivers seat regarding exercise. If the stock goes out at exactly 150, neither option would be auto exercised as neither are in the money and would expire worthless. If the stock goes out even .01 lower or higher your in the...

Here is my advice, Your goal should be to liquidate these positions, not trade them. You have no idea whether the stocks are going up or down, just close them out now. Most of value of the portfolio is in the Apple options. These are simply a bet the stock will go up. Sometime after the...

As Yaris mentioned, SPY options trade until 4:15et. You are seeing the 4pm "closing" price on the SPY. SPY will continue to trade in the after market. This is one of the risks/opportunities having short/long options on expiration. You may be short an out of the money put that went out at...

An update on this issue for anyone interested. Apparently in a PM account, there is no multiple of equity buying power for options (only for stock). So if you buy a 20 lot of a 100 option and sell it out the same day, you will need to have $200,000 in your account. When doing option spreads...

Well, VIX options have now been trading overnight for just over a week and the SPX options since Monday morning. Spreads tighter then I expected. The only retail customers that seem to be able to trade these are IB, or so I have been told.