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A stock can be delisted to the pink sheets because of not meeting listing requirements. Just because it has gone to the pink sheets doesn't mean that it's worthless or trades for pennies. The key to all of this is after delisting, what are the shares trading for and if ITM, what are your puts...

And you think that anyone here KNOWS what AT&T is going to do in the next few weeks? Here's reality. You have a profit and those options expire in 2 weeks. Every day some of the 15 cts of time premium is going to erode, faster and faster each day. Each day the delta is going to increase...

If the stock is delisted from option trading but still trades,usually, they do not add new series of options but trading continues in existing options out to the farthest month in which there is current open interest. If the stock is delisted from trading then it's worthless and puts are worth...

Indeed, the problem with deep ITMs can be a Holland Tunnel wide spread. Which is better in terms of margin requirement (deep ITM vs synthetic) depends on the strike and time remaining and perhaps one's incompetency (see below) :). Closer to expiration, strikes with a delta of 1 will be...

What would be better would be getting the direction of the underlying right and making money with your option position :)

I'll leave it to you guys to reply to what you think that the OP thinks he thinks :) As for margin on these equivalent verticals, it's the same either way. For example, a 5 pt. vertical with a 2:3 P&L. You can lay out 2 pts for the long call spread, have a 3 pt potential profit and have no...

1) If the spreads have equal P&L potential, then the main difference is assignment and commissions. For example, if you buy a spread and you're 100% wrong, you lose the premium. Done. But if you sold the equivalent spread and you're assigned then you have to deal with closing the...

I am so totally missing this. And I have no clue what calcs go into HV 30, 180, etc. so it may be my ignorance of your system that prevents me from seeing this. In looking at today's closing chains, the skew is in the outlier strikes where averaging the B/A to get the IV can make the IV look...

A lot of techies have no clue what an indicator might be telling them. For example, a short term simple moving average may be turning down because the early big up days are being removed from the calculation rather than from the new days being added. Stochastic (and other indicators) are...

You need to join me over on the FANTX (the Fantasy Exchange) where anything is possible :D

Legging in or being a market maker gives you a better risk profile than trading the naturals but doesn't prevent you from obtaining a position with a broad profit zone. Here's the verrrrry long answer: Deep risk between the profit zones of two butterflies occurs when the short strikes are...

When the MM's head south, spreads may widen and IV may expand dramatically. While I'm not a conspiracy theorist, somehow market orders in a fast market tend to get the worst fills of the day :) One is usually better off trading in the underying but during the Flash Crash, even that was tough...

Great first post! ... for an options BB

If they acknowledged it as an error (and it was) then they should have given you the cash. Do yourself a favor and move to a low commission broker.

Broker management of multiple spreads isn't a problem if all short positions are covered because there's a finite loss amount on credit spreads (and vice versa). It's a bit of work but if you do a search on DAGNYT (a poster) and read his thoughts on iron condors, you may pick up a lot of...

On one hand, you have the IB web site and the cut and paste from your margin statement saying one thing about margin and on the other hand there's a lot of traders telling you something else. And with that, I bid you adieu... and to some others, a don't.

Since you appear to be comfortable with varying degrees of time, if the UL has dropped, consider rolling your call spread down and out a month for more credit. If you set up an index IC with a 100 pt range and it's now 30/70, rolling the call spread down 20 pts will restore your 50 pt buffer on...

Shares are $18.04 and you have 300 shares so share value is $5412 Equity margin is 30% so margin requirement for 300 shares is $1623.60 Margin on covered call is adjusted by ITM amount. The call is OTM so no adjustment. If your margin requirement for 300 shares is $1623.60 then it's...

If the UL drops fast, there's a good possibility that your contingent order may not fill (if a limit) because it may pass through your price faster than you can say Flash Crash. And if it triggers a market order, you may get the worst fill of your life. It's also possible that there's a gap...