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The word on the street is that IB has very poor customer service. I've had mediocre success with them. They help with some issues, but not with others. I have had some success calling thm and getting an order filled, but sometimes you wait on hold, just to get through to them. The whole...

Technically, the options do not expire until Saturday morning. Thus, you would be naked short, after you sell your Sept options. But, it is obvious that OX or TOS grant you margin relief from being naked, while IB does not. Of course, once the market opens on Friday - and it doesn't...

Yes. All I am asking is if anyone has had a similar problem, or do all other brokers do as TOS does, and free margin on Friday.

If you choose NOT to close, what do you on Friday? Are you able to either sell out (or sell something to spread against) your remaining (in this case) September options? Is there a problem with selling your Sept to clsoe the position? My broker (IB) would block the sale of the options...

I learned today from my broker (IB) that there is a problem with carrying diagonals into expiration. If I DO NOT COVER my short Aug options today, I will NOT be allowed to sell out my long Sept options tomorrow. That's because they consider the Aug shorts as still in existence (even after...

They are NOT opposite. With GOOG, the IB system used the term "vertical spread" and correctly described the trades. When 'buying a vertical spread', you buy the more expensive option and sell the less expensive option. That's bullish for a call spread and bearish for a put spread. With...

That's exactly how regular investment clubs work. Must you really get more complicated than that? Mark

Just a warning: Given: Multiple players making trades. Given: Everyone already likes diagonal spreads. Result: Some traders are going sell out someone else's longs or buy in someone else's shorts. Tax Nightmare. Also Position confusion. Suggstion: Form an investment club...

Youa re NOT wrong. They settle on Fri at the opening price of EACH of the individual components in the index. They DO NOT settle at the opening price of the index. However, they expire on Sat. Equity options also expire on Sat. I believe it was just easier for the industry to have a...

Just look at a CBOE calendar. You will see that the options expire Saturday. http://www.cboe.com/AboutCBOE/xcal2006.pdf Mark

That's absurd. You might as well say - if you buy before it goes up and/or sell before it goes down you can make money. You can make money with any trade any any price - but only if the item you trade makes a favorable move. Bottom line, unless the margin factor is critical, it's...

The options technically expire SATURDAY. My broker (IB) does not release margin until Monday. That feels normal. Can't release margin until after options technically expire. But, someone else here stated that TOS will release margin on Friday, if you call them. I don't understand how they...

Why not short SPY instead. Stick with the ETF that has better liquidity. Mark

IB will not release the margin. The question of whether they will allow the sale remains. Mark

Question for anyone with diagonal experience (Murray - that's you): Assume my account cannot hold naked short options: If I am unable to buy in my short Aug options on Thurs, will I be allowed to sell out my long Sept options on Friday? I asked Interactive Brokers and they said no; then...

The OCC does not make exercsie decisions. The owner of an option has the right to exercise ANY TIME before the option expires. You cannot sell options under parity and expect to do anything but lose money. Mark

Yes, you are missing something important. If the stock is 40 and you sell the 20-strike call for $19, then you are selling the call at $1 BELOW PARITY. Any market maker who buys the 20-strike call at 19 is going to do 2 things. First he is going to sell stock (short) at $40. Then he will...

We all know this, but it's worth restating: That's the way is has to be. If you never stopped yourself out of a position, you'd win a lot more often. But, every once in awhile, not closing would result in a devastating loss. That's why we pay insurance and close positions. Mark

I was too short this morning. Thus, I adjusted some call spreads that went ITM by rolling to higher strikes in a further out month. Hated to do it, as holding short positions in options that are near the strike is the path to LARGE expiration profits. But, being short that gamma is too...