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True, the terms of the contract are the key. It's all about the probability of early assignment. If the option can be sold for more than parity, then the market value is greater than the exercise value, so, generally, those options will not be exercised early. Some years ago I experienced a...

Good post, but disagree on a few points. Yeah, generally, early assignment is great, assuming that the assignee has the capital to cover the UL. I almost always trade this way, although early assignments have been rare. Generally, if the option has a delta of 1, early assignment becomes very...

The calls were ITM.

Aug. 30th was the last trading day.

The bottom line here is that these guys are pros and get paid big bucks for investing OPM. They really should know what they're doing, but I realize that that can be an idealistic and naive viewpoint. I couldn't read all of it, but it did mention cash-secured puts, implying no leverage. But...

I sure liked tennis before I blew out my knee. Lots of great strategy and skill to the game; as well as physical ability. Someone asking how to trade is like someone asking how do you play tennis? Um, practice a whole lot and develop your game?

"the market can remain irrational a lot longer than you can stay solvent." The Donnap Corollary to this saying is that "the market can remain irrational a lot longer than you can stay rational."

The div. is priced in at the approx. delta if there were no div (just before ex-div). Delta is changed by the div factor. Theoretically, the UL drops by the amount of the div. and that is priced out of the put by the factor of the post div. delta. So, in a theoretical world, there is no gain...

Nice trade, nice close! I wouldn't have taken that trade, but good job.

Sure and I didn't mean to sound abrupt - just busy. Scroll down the page and it shows additional fees. You can hit the BATS or PSE to see their remove liquidity fees. Believe me, nobody likes to pay more comms than they expect. I mostly trade FOPs now with a fixed rate...

I am defending them. Nowhere on the equity option comm. page does it mention a fixed rate. The .70 is a base price. On the comm. page it clearly shows exchange fees, reg. fees, transaction fees and OCC clearing fees. When I traded equity options with them, my average comm. was about .50 per...

Pretty much says it all.

It's not a matter of what's fair. The margin for selling options is arbitrary. What would be fair is if the margin was only the market price of the options. But brokers have to protect themselves from traders that go overboard with leverage. So they set a higher margin. This is based on a...

It just means a $250 minimum margin, if that amount is greater than the margin calc.

Totally, man. And you never stop learning. We used to have a joke on the old yahoo option boards that went something like, "I hope I don't learn anything today." heh, heh.

Generally, the synthetic ATM straddle will be 1/2 size of a straddle using two .5 delta options instead of the UL. Long 200s, long four .5 delta puts is equivalent to +2C, +2P ATM straddle. This is a generality, as there are exceptions.

Yeah, even with a desktop, the P/L is often messed up. Account balance during RTH is often a good indicator of P/L, but with recent wider spreads, option valuations may be messed up. For me, I like to know my position and often can approximate P/L in my head. Still, it ain't over 'til it's...

That is the key as to why it's not a good idea. To trade DITM intraday or overnight is inviting too much slippage. That's the reality of the marketplace. You're better off trading the UL smaller size. Theoretically, you should trade the nearest expiry with the most liquidity. Many equities...

About fiddy cents.