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Options are adjusted for stock splits so your friend should check with the company what the current terms of his options are.

Quarterlies are European style! You are right about the PM settlement though (sorry, my bad).

I'm not sure what you meant here since all SPX options are European style not just quarterlies and all of them go through the same expiration process (the settlement value is calculated on the opening print).

Mark, the actual magic number is 28.4587...% (sorry can't give out the whole number), but the OP just rounded up to 30% for convenience and, obviously, to preserve the secret. :D

Adjusting a losing trade will always result in an inferior risk/reward ratio relative to initiating a new trade.

The only reason is that they expire on the last day of the month, which can be convenient when you use them to hedge a portfolio and report your positions at the end of the quarter.

Not necessarily. One way of trading is coming up with some generic criteria and then searching for candidates that fit the criteria. The other way is that you already have a stock (i.e. follow only a limited list of stocks) and you are just looking for the best option strategy to...

Well, based on what I mentioned earlier and the fact that +6% to -2% is the "suggested" range, I'd say that the positive skew would be front month higher than back month and vice versa.

I have no idea, but what do you mean by consensus being...? Consensus for what?

In a calendar you short the front month and buy the back month so you want the font month vol to be above the back month.

Wake up mate! It's 2009 the Marks are long gone, Germany is on Euro now!

Longer term options have lower deltas than shorter term ones and are extremely sensitive to changes in volatility and interest rates.

There is so much free stuff on the web that I wouldn't spend a cent on option education, well except getting some books. On a side note, the best teachers are the ones that don't teach! :)

It's fairly similar to the US market.

It's not IB-specific. Thinkorswim issued a notice this morning saying that the OIH positions are being adjusted and that they would appear in the accounts in a bit.

You mean dependent not independent.

At expiration the maximum profit potential is reached when the short strike is ITM.

In addition to Philly you have FX options on ISE. Also spot cash-settled rather than futures.

I have no idea about the margin on HK warrants, but don't you think that it's quite a leap from ES straight to HK warrants!? :) "...f*ck the ES, it's too crowded, I'm going to HK warrants..." :D

Mark, Your warning is incomplete. American-style is not that much of a problem in itself, the real problem comes from the pairing of American-style with cash settlement.