Search results

To determine that you have to have a opinion on where the stock will go or not go after earnings.

You should have enough to cover margin in your account before. Call IB if you have questions about that.

It might be easier to hedge by shorting each component in the correct ratio, then exercise. Or exercise then liquidate the next day. The 1st method provide more control of price as the next day leave you open to price movement. Margin might also be an issue. I'm not sure what type of account...

You will face liquidity issues in both directions. Use limit orders at the price you want to enter and exit. Decide how much you are willing to give away to Fair value, whatever you feel that is, and slowly move your limit to that price and hoping for an execution. If that does not work, you can...

I know you want to have a plan in advance and that is not a bad thing. In my experience, it is better to pick a price point that you want to make a change, then look at the current options prices and your expectations at that time, then make a decision how to proceed. You need to keep you mind...

They just don't want any risk on these accounts. It's a shame.

I don't believe TOS allows for manual position adjustments. Corporate actions are always a mess. They are often delayed hitting your sheets and platform. Some clearing firms won't make the adjustment until the shares settle through DTCC. Some will make an adjustment before.

Putting aside the legal/illegal aspect to this, you are making the assumption in advance, that you know you will make or loose money on a trade. If you could do that consistently, I would focus on that. Most of us have a "expectation" of profitability or we would not enter the trade. You are...

No you can't recoup any losses that way. Time has passed and you lost that money along the way. Look at market to market P & L as the realistic P & L. Don't think you have not lost money until you close the trade.

The fcms I do business with are based in the USA. They take foreign accounts and if you want, you can maintain the account in your currency. You will have to file a w-8 BEN for foreign based accounts. After that I have no idea how taxes are treated. The risk will be set as I said earlier.

If you own the Jan 2016 calls, the closing market looks like 7.50/9.00, last sale 8.60.

The majority of expiring options follow that. The more illiquid and volatile the stock is, the less relevant the close is. Take GE vs PCLN. GE is around 27 and PLCN is around 1183. If GE closed at 27.01, the risk of not covering a hedge or cover is low over the weekend. For a position in PLCN...

The 0.01 ITM rule exists to streamline expiration. Without it, all option buyers would have to contact their broker and those brokers would need to contact the OCC. Too much work for nothing.

vopiscus, The price you sold or bought the options is not relevant to the situation. And, the person you did the trade with is not your counterparty anymore. All that matters is what the closing stock price is at expiration, what happens after the close but before the time when the buyer needs...

Basically what ever platform you are looking at is not showing the OPRA close. Most Brokers use the bid/ask average overnight but some use the bid or offer if the last sale is outside the NBBO. These are the closing markets on my platform. This is not a big deal. If you offer at or below parity...

How often do you expect to be able to do this at a discount? I don't see this trade available often without legging and have risk.

What do you consider low? Would a price shock of +|-10% with a vol shock of +|-20 vol points be adequate? Email me if you want to provide me more details about your trading and your account. Bob

Try contacting CTS. http://ctsfutures.com/t4_version.aspx . I can give you my reps name if you email me directly. You can get basic T4 Desktop and charts for $25/mo. then $.50/contract capped at$500/mo. This includes futures and option data for CmE, CBOT, EUREX, ICE LIFFE and LME. I asked...

The view that MM are "marking up" prices gives the impression that they can control prices.They price options based on expectations and supply/demand. The market players in general won't sell these options without being paid for their risk, but they also won't be the only buyers out there at...

Vega risk. You need to expect the drop in implied vol after expected news. This is common.