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Crazy moves in the last minute in SPX. .10 puts go to 1.40 in one minute.

Another option is to purchase a box in the SPX. Implied interest rates for short term boxes (about a month) are going for slightly over 2%. You will have the cost of execution and since you are using up capital, if you buy something else later, you may end up paying a higher rate when you need...

To add, even if you are able to keep the short stock, you will pay a lot for it as it is so hard to borrow. This will eat up any profit you made selling the box over 10

Riot is a very hard to borrow stock, short sale restricted. If you sell a box here you may be short the a call that will be assigned. You will then have short stock that they may not be able to locate. At best you will be forced to buy short stock in, at worst you will be forced to by it on...

Hey Sle, I don't know a lot about these things, but these are the two that I am considering. http://www.microcenter.com/product/477072/ET430K_43_IPS_UHD_LED_Monitor http://www.microcenter.com/product/480793/LC49HG90_49_Ultra-wide_Curved_HDR_QLED_Monitor_w-_AMD_FreeSync The second one is...

I agree with what you are saying, but where the 4pm close matters is for the auto exercise of options. A trader will have to proactively file a contrary exercise form, or exercise something manually that was out of the money at 4pm if he feels it is correct based on later trading. There are...

The 4pm price is used for a closing price. This is the price that will be used for auto exercises. The long holder still has the option to not exercise his option, or exercise one that is out of the money at 4pm. Where the SPY is trading later will obviously affect his decision.

Your puts were trading .04 at the close, so if this happens again you may want to consider buying them in so you don't have any assignment risk.

To add one more, the long holder has until 530pm to file the contrary exercise (most brokers have an earlier cutoff) so where the SPY's trade until the also matters (They continue to trade after 415)

I'm seeing a close at 266.51, Currently trading around 267. It went up after 4 as the S&P futures rallied after 4 until they closed at 4:15. Whether or not you are assigned is based on the 4pm closing price, so you should be assigned based on the 266.51 price To add though, the long holder...

Maybe you're misunderstanding me. Say a market is 1 bid at 2 on the CBOE,ISE, ARCA, BOX and some others. If you send a market order to sell at the CBOE there is a good chance you will be filled better than 1. If you send a market order to the BOX, your fill most likely will not be as well...

This is just not true. NBBO will prevent a trade through if one exchange is quoting a better price then another, but if they are both quoting a wide price, you will generally see better fills at the "main" exchanges rather then the 'crossing" exchanges in my experience.

Yes, in my experience it seems that generally the at calls will go down and the at puts will go up the "harder" to borrow a stock becomes.

Suppose the market on both the box and cboe are 1 dollar wide. I agree that with NBBO the order would have to fill at least the best price quoted, but in my experience the auction system is far more robust at the cboe, yielding you a better price improvement on a market or limit order.

The deeper in the money are already trading parity, can't drop anymore.

You were assigned because this is a very hard to borrow stock, currently listed as short sale restricted. It is very risky to sell in the money calls in these situations as it is very likely you will be assigned. You may even be forced to buy your stock back on the cash market for immediate...

Couldn't disagree more with these statements. Do you think a market order directed to the Box exchange would yield the same fill as one sent to the CBOE? I don't think so. You also cant really internalize SPX flow very well, especially the smaller quantity you would expect to see here. All...

Here's a great example of when you are better off buying a synthetic (long call short put same strike) then buying a stock if you want to hold it. Mara currently 5.60. The Jan 5 calls are offered at .75 the jan 5 puts are 1.40 bid. If you are planning on holding the position until jan...

I would disagree. If you are called away when you should be (the calls you where short should be exercised) this is all written into the price of the conversion, as you have now essentially bought back your short calls at parity. You have only a potential to make money (assuming no upward...

I'd have to disagree with SLE here. If you buy the conversion, (long stock, long put, short call) Your only risk is a change in interest rates (upward) or a change in the dividend (down). If your stock gets called away early, that's a good thing. You will have your long put on for free...