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Well, the "drop" in the SPX really came Thursday afternoon, between 3 and 315 ct. The futures fell hard and went out at a big discount. The Vix continues to trade between this time but the SPX cash does not. So Friday's stats are a bit deceptive. If the futures opened unchanged, the SPX...

Also remember your Vix calls are priced off the November Vix futures. So even though the Vix was in the 12's when you bought the calls, the future was probably in the 14's. The November future is around 21ish now, so not as much as a rally as in the underlying.

You are assigned on a 270 dollar stock. Your 100 shares represents $27,000. Even with margin, you need to have $13,500 in your account, plus the price of the put, to hold this position. Granted you have no risk with this position, but that doesn't matter, you don't have the funds to hold it...

Lol, that's when I trade them.

SPX and VIX options trade from 2am to 815am ct.

If the spread is actually sent to the COB rather then being held by IB (until they think it is marketable) the spread can be viewed in the COB by both MM's and customers. There are no "hidden orders" in the COB, it would have to be held by the broker.

I heard that JT Marlin is being investigated by the FBI

The hard to borrow status and increased cost to borrow is what creates the higher put premium. Of course Low float is one of the factors that cause the hard to borrow status. Demand has to be higher than the float. Low float alone will not cause hard to borrow.

Its not the low float, its the hard to borrow status. When a stock is hard to borrow the puts are bid up and the calls are sold down. To replicate short stock, you would buy a put and sell the same strike call. This reversal is more costly and thus more premium in the puts. The deep calls...

There is zero chance of assignment on short puts (absence a mistake) The puts are trading at a big premium do to hard to borrow status.

Actually that would be buying the put fly not shorting it. That price seems high to me, but if you do buy it, enter it as a spread and direct it to the CBOE. Start with a lower price and walk it up slowly. I've been noticing the best fills at the CBOE, with price improvement.

He will not lose the "difference in the strikes" if his butterfly is exercised and he would have a hedged position if assigned. He could lose money in the ways mentioned in my last post.

If your friend sold the butterfly and was assigned on his short calls, he would be long calls and short the stock. He could then exercise his long calls and he would have a profit of whatever he sold the butterfly for. If he bought the butterfly, it would be the same situation but he would...

Id also suggest either TD or Interactive Brokers. IB will be a bit cheaper trading, but you will pay for their quote feeds. TD will offer you more help if you need it.

Your friend is wrong about Fidelity. I have an account there and it is very easy to trade option spreads. I use their Active Trader software, very ease to enter a option spread order.

I hope that's the question Bob. I read it to read he wanted to buy a call option at 50 and sell the same one at 51, for a guaranteed profit.

If I read this right, you want to buy and sell the same option, at different prices, and enter it as one spread order? Or are you asking once you are filled on a buy order you want to automatically have a sell order entered.

Short calls will most likely be assigned early.

Actually those calls are trading with no intrinsic value. You will get assigned on them if you are short them.

@Leopard9 If you want to buy this stock, you are much better off buying the calls. You will have limited risk and almost all the upside, due to its hard to borrow status. See this post. https://www.elitetrader.com/et/threads/tlry-options.324953/