RIOT
19,20,22
+1,-3,+2
Credit $0.45
Expiry below $19 = $.45 profit
Expiry at $20 = $1.45 profit
Expiry at $21 = $0.55 loss
Expiry above $22 = $2.55 loss
Thought I would layout the OP's RIOT position for easy visualization.
Instead of a function for all the header stuff I would put it in header.php.
<?php
title = "some title here";
include("header.php");
echo "content";
include("footer.php");
?>
Lets use AAPL as an example.
AAPL at $132.69.
Jan08 134 calls appear to have the highest open interest at 32,437.
Will AAPL close at $134 on Jan 08?
Lets check back this Friday.
I do believe the above example is what the OP has in mind - if not please correct it.
There will be no data.
Pinning doesn't exist - after expiration you can come up will sorts of reasons a stock behaved in a certain way. By then it's too late to make a trade.
Pinning is an illusion.
With so many option strikes of course the underlying is going to move toward one of them.
And with so many stocks you might have some stocks ending up on a strike to the penny on expiration day.
You will only notice a pinned stock after option expiration- not before.
I have never heard that term before.
And now that it has been defined I still do not consider it to be a risk at all. "leg risk" is a moot point.
Just because a spread isn't filled simultaneously doesn't mean the 2nd leg will be filled at a worst price - it could just as easily be filled at a...
Your experience with your previous broker should give you a good idea how to figure all that out.
The process of opening up a trading account doesn't involve questions about bankruptcies, so my educated guess would be NO. You should have no problem opening up a new trading account.
I prefer no changes to the US option and equity markets.
Pre-market and after hours is what makes the option market so good. Don't fix something that's not broken.
Adding more option expiration days will be OK though.
It's part of regulations that require IB and all brokers to collect the info on income, liquid net worth, trading experience, etc - So they have no choice.
But IB clearly wanted to lower-the-bar for new clients by reducing the minimum new account balance from $10,000 USD to 0.