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PG is not the only stock with options trading @ lower IV than SPY. There is also PEP, KO, MCD and etc. Financials are a big part of S&P 500 hence the market perceives them as higher risk.

Well, I guess the market thinks that a stock such as PG carries less risk than SPY. Interesting, yes...mispriced, probably not.

Is this a joke or you seriously don't know what American/European means in the context of options!? American, European has nothing to do with the domicile of the underlying stock. American-style options can be exercised at any time prior to expiration, European-style options can only be...

This is a good point. IB does liquidate positions to meet the margin call in other positions.

Your comment is ridiculous! There is no justification for IB doing what it did.

This is probably true, but it relates to human psychology not options per se.

Indeed. :D

The reason you should read a book on options (not macroeconomics) is that based on your posts it is clear that you lack the basic understanding of options. So if you read one then you wouldn't ask the questions you do now.

Until you read at least a basic book on options the only juice you should be worried about is the one you have for breakfast.

No, if carry is not zero then the call's extrinsic value will be greater by the amount of carry. If you adjust for carry then it will be the same. So this is not a mispricing nor it is an arb, this is put-call parity. That is, if you were to sell the call, buy the put and the stock to...

The only reason that the two lines do not overlap is because the cost of carrying the long stock is not accounted for. That is, if you buy a stock then you either pay margin interest or forgo the interest you could have earned in a risk free instrument. These kind of analysis software packages...

In light of the thread you started here, I don't think you are qualified to give out any advice on options.

Yeah, don't you get it, first he sells-to-open and then he sells-to-close thus realizing a risk free profit! Brilliant!

As far as I know, no broker would allow a retail client to take delivery.

Well, commissions and slippage do add up over time.

Synthetically they are the same. However, a short put has the advantage of lower transaction costs. Generally speaking, if you already hold the stock for other purposes then a covered call is the way to go. On the other hand, if you don't have the stock then you are better off just writing a...

A margin call cannot protect in case of a price gap. In any case, the broker is there to fill your orders not to clean up after you. You seem to be completely oblivious as to how the markets work. Futures are no different to CFDs from the point of view of risk of losing more than you have.

What are you talking about!? Customers are paying for their own losses not broker's! It's not broker's fault that you took on a position that is too big for your account.

In your dreams! Of course you are responsible! You can lose more than what's in your account with futures. It is options (assuming you only buy them) that you can't lose more than you have.

I suggest you read "Option market making" by Baird.