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Sig is spot on with his advice. Absolutely correct. You almost never want your order routed to a broker in the SPX, unless you are doing supper size and you are able to speak directly to him about the order.

This is not an option. A trading permit will be in the $7,000 a month range for the SPX and you will be required to be a registered broker dealer, provide quotes, and find a clearing broker.

First, if you are doing over 10,000 contracts a month, you can sign up for the CBOE's frequent trader program and they will rebate you 3% of your exchange fees http://www.cboe.com/products/frequent-trader-program-cboe TOS charges an all in amount per contract (or at least they do for their...

Based on the after hours trading, the put is worth close to $52, which will be around a $3,700 loss. Sorry this had to happen on your first trade. As OptionsOptionsOptions just mentioned.

Your short option will not be exercised.

Selling a box in the SPX will not increase your available margin. It will increase your credit balance for interest rate purposes.

Actually probably not true. If some one opens and closes in one day open interest will most likely increase. Say I buy one contract in SPY, market maker sells me. I later sell it out. Unless the exact same person buys it from me (which is unlikely) another person/market maker will have...

Too add, Some brokers do not allow you to access the actual spread market, when you enter a futures spread they simply hit the bid on one month and take the offer on the other month. But, there is an actual spread market where there is no risk, you will buy and sell as a package. You will...

Actually this is not true. If you have a professional customer designation (and pay higher exchange fees) you can post two sided markets. Also my understanding is if your bid and offer are on two different exchanges, it is allowed. As a practical matter, many brokers will simply not allow you...

Lightspeed perhaps??

That's what you would think, sell a 5 vertical in the SPX and you would think the margin would not be more than 5. But with IB that is not the case. When vol goes way up and there are wide markets, they increase the margin at times to more then 5. Numerous threads on this subject. It is...

They way I read it he bought the 6/18 calls and sold the 6/15 calls for .02.

His position will become a synthetic put if he is assigned on his short call. He bought the calendar, for a debit. It is not a credit spread.

Exactly

Its not cash settled, if SPY ends up above 279, you will be assigned on your short call and get short stock. You will then have the 6/18 calls vs short stock, which makes you synthetically long the 6/18 279 put. What is your risk? You need to have enough capital to hold the short stock if you...

IB will not hold a straight order, they may hold spread orders until they feel it is marketable. If you placed a limit order to sell below the current offer, you should be adding liquidity and generally you should be getting a rebate. If this is the case you should follow up with IB on why you...

Welcome to the crazy world of exchange fees. Robert gave you a pretty good summary, but to add a bit. In SPY options the fees range to a surcharge of .50 to a rebate of .42, depending on the exchange and whether you are adding or taking liquidity. If you put a limit order in to buy below the...

Great story, thanks for posting.

I'm confused how you get better protection splitting the account. SIPC covers up to $500,000.

What you're missing is the ability to sell the call at 13.10. The "real market" on the call is around parity bid/ .15 over parity offer. In your example if you were lucky enough to sell the call for 13.10, you could buy it right back for 12.75. And you would most likely be assigned on the...