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Most options expire worthless because usually, only worthless options are allowed to expire.:p Why would anyone give instructions for an ITM option to expire? Usually, they are sold or exercised. Some ITM options may expire because of transaction costs or because they are not worth...

Oh geez, you would have preferred cash-secured put? At any rate, you are correct and my feeble old eyes misread the margin which is only the strike of the put. In a cash acct. the debit spread is not allowed - but it doesn't matter.

Rockford makes his case. Cash covered NPs are allowed and that's how this position would be treated in a cash acct. The margin req. is strike + put price. The strike would be covered. But since IV was exploding, it's possible in a cash account that he had a margin call.

No, the question is how is the risk defined. The trader held the risk and the broker had no risk - until the auto - liq. kicked in. TWS' logic failed to adequately define risk in this case.

From earlier in the thread: "My positions in my account were: - x amount of June SPY 119 long puts - x amount of June SPY 114 short puts - y amount of May USO 40 long puts - y amount of May USO 37 short puts - cash" Vertical spreads. OP provided enough information for IB to deny...

When Chuck Norris sells an option, it expires immediately. "What's the point? - I'm doomed," it says in its final last gasps.

Nonsense. The SPY options are American style and can be exercised. That may be the market of last resort, but it was there. The option spreads also have minimum value parameters based on the underlying. These parameters should have been recognized. There are many illiquid option markets...

+1

Yes, and then the obvious solution would have been to place the liquidate last function on the puts. If true, it's a tough loss to take. Wake up call.

Here is a real time example for you to ponder. Earlier today RIMM @ 69.30 May 65C bid/ask @ 5.00 x 5.10 May 65P bid/ ask @ .72 x .73 No div, ST interest rate negligible. If a fair value for the put was about .73, then the call should sell for about 5.03. The put price was...

What is a put and equivalent call? Do you mean a put and call at the same strike and expiration? "puts and equivalent calls have different extrinsic values because the market compensates the different carry costs of each other trade." Yes well said. Er, but there are exceptions when...

:D My sentiments exactly. No fills on my orders.

Halted

MTE is probably right, but I suspect your numbers - assuming one contract at each strike. The -50 delta refers to the underlying - so that'd be -1/2 futures contract at +17. That still seems pretty high, but with low vol. it is possible. A spike in vol. pumps up option prices across the...

It sounds to me that you are confusing clearing house with the exchange. That is where orders are matched with MMs being participants.

If XOM at expiry is 80 then you've made 1220+90+132=1442 You could sell the 80P for 1420ish The differential could be attributed the interest rate priced in for the greater investment of the CC write. Divs are priced in to the put. If you think that you could sell or trade the call...

Same here.

Who didn't turn a little back then:D

Really? That's incredible. Is that policy in the contract? IB assumes that the trader/investor knows what they are doing and lets them carry any position that they have the margin for. (With a few exceptions - such as short stock buy ins and deliverable futures after the close out...

Since TWS doesn't run on Saturday - I'll assume that you checked your Friday account statement. Check TWS on Sunday after noon (EDT). It should show the stock positions. Occasionally, option assign/exercises may be delayed, but you should see them by Monday before the open.