Search results

Good advice.

Meanwhile, back at the ranch, I'm putting on trades that are designed to make money!

Reread the first paragraph. That is what Atticus meant. That's why selling a DITM call for parity won't work because it doesn't factor in the cost to borrow. Run the ATM syn. numbers to see. Think of the other side of the trade. Long ITM call @ 1.00 delta, short 100s HTB (assuming...

It is a fairly reasonable assumption that an MM sold them. With their complex positions covering the strikes and expiries, the 20 lot means little to them and probably did serve to close part of a position at an advantageous price. The fact is that the puts were worth far less than .01. -...

Either OP isn't disclosing everything or there's a glitch with TWS margin calcs. Hmmm...I wonder which one is more likely? Given that OP's massive prior posting history deals mainly with not understanding the logic of "liquidate last," I'd give the nod toward him. The lack of posting...

Yes, without the specifics it's hard to tell. OP does not state the exact expiry. It is possible that he is using weeklies to hedge monthly, hence the margin treatment.

SPY options cease trading at 4:15pm ET. At that time SPY was above 116. Should've been no surprise. Auto-exercised likely.

I dunno. I'm kinda getting tired of it.

Thanks. I think Step 10. is "collect underpants."

My favorite was, "Their are three types of Put Options..." This is a mysterious sentence. He must be on to something. He sounds smart.:confused:

Just edited. It looks like you might have to enter diags separately? Or staddle/strangle orders?

I'm not familiar with OX, or that type of spread order, but it looks like the order is for IC only, vertical that is. Hence the rejection "debit is greater than difference between strikes." If they require entry through two diagonals, they would double comms, yes?

The stock hedges the fly, the fly hedges the stock. Of course there is risk, but this close to expiry, time decay probably adds to downside cush. Long stock guarantees upside profits and beefs up where the fading 250s leave off. At only 10s per, downside bail out of stock well below the...

Never got in to that show, but in the early '70s we'd bust up watching reruns of Conried's Fractured Flickers and the Rocky and Bullwinkle Show, er, with a little help from our friends. The funny thing is, is that this thread is no more absurd than some of the other option threads floating...

Rationalize doubles the fun. It's all about the net. Gotta love this thread.:eek: Nice one on the divs thread as well.

His words were intended for those with short calls, not you.

Exercising long puts is not assignment. What assigns in to short shares? Short calls. Only those with short ITM calls (part of spreads or not) need be concerned. Since today was ex-div. the calls would have been exercised yesterday and the short shares would have shown up today.

It depends on where it trades ex-div. Especially with larger divs there's no guarantee where it will go. You seem to have it planned out well enough, but be prepared for surprises. These things don't always go the way we think they should. It could go in your favor - or not. Also...

You got a +1 on this. Wow. This is basic options 101. Holders of American style options may exercise any time before the options expire given certain time restrictions. Yes, the puts likely wouldn't be exercised unless they are ITM and no TV. Early assignment of puts should also be...

Yeah, after '08 I continued with my conversions for a while, using SPY because I was trading it. Used to use RIMM because no div. made it obvious how I was doing and yield calcs easier. A little in to '09 I realized that I was doing nothing more than trading SPY and any profit in the...