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If i am short some options and get early assignment that causes me to have an amount of shares far beyond my buying power, will IB at least wait until market open to auto-liquidate? Or do they do it in pre-market?

If this happens, why not sell ATM covered call verticals instead? You'll still get premium income, and you keep upside potential with the long option. You lose the upside equal to the width of the spread, but once the underlying gets above your long strike you're golden. I can see this being a...

Thank you for clarifying. That's how I interpreted your post earlier, but then longthewings' post seemed to contradict yours, at least the way I interpreted it. But now I am reassured

OK. So, given the example in my original post, if the VIX went from 14 to 15 and all other factors are equal, would the LEAP premium increase by .30 since that is the LEAP's current Vega and vice versa? That's really all I really want to know.

thanks. So would you say that if I were to buy a call 6 months out vs 12 months out, that, all else equal, comparing the vega of the two should not affect my decision. Since the 6 month call will have a lower vega, but more sensitive VX futures, and 12 months out would have higher vega, but less...

Say I am looking at SPY LEAPS at the money and the vega for the calls is .30. then I see that the at the money options expiring in the front month have a vega around .12. If the VIX rises by 1, then the front month options will increase by .12. My question is, will the LEAPS increase by .30? Or...

I think #3 is the missing ingredient I've been needing. Thanks for the suggestion I will try it out tomorrow.

I am trying to program a scanner but I am struggling to think what logic I could input and give me the setups I want. Basically, what I want is a stock that has been on a run and then has pulled back to a certain MA. seems simple, but its been hard filtering thru all the BS that my scanner...

My reasoning for my stop placement (and for this thread idea) is to see if anyone else who sells options manages risk the way, maybe, a stock trader would: with a stop at a dollar loss level or a price level. I think its an underappreciated philosophy that option trades don't have to be...

For those who regularly write options as their primary trading vehicle, are you setting stop losses? Whether they're by $ amount or technical level. Risk management is key in this game, especially as an option writer. I do set a stop, which is when the premium of the option doubles the price...

How would a U.S. default affect the average citizen?

Gee, sounds like someone had a bad night drinking....

The past couple of weeks I have been paper trading with ThinkorSwim's Paper Money to test a new strategy and I have had a few very strange things happen to me: Sometimes, I will put in a market order, the order status will say "accepted," but never fill. If it does fill, it will be at some...

I have a day job and because of this I can really only trade futures during the evening hours. Does anyone know of any decent live chat rooms of other traders with similar trading times? I am looking for something like stockhaven.com, but with people who trade futures in the evening instead of...

I am looking to buy this dip in XIV. I would probably buy 200 shares or so if i did. I am wanting some insurance in case XIV drops even drastically further, but unfortunately XIV does not have put options. If I bought 2 call options on VXX while being long 200 shares of XIV, would that...

Is there any way to switch back and forth between your live account and your paper money account in thinkorswim without closing out of the program and logging back in? Maybe it is an obvious feature and I am just missing it.

I have been wondering these things too, esp the one about whether XIV continually moves up under neutral VIX periods because of the inverse of futures rolling.

I am short 2 SPX 1565 march monthly calls. Open interest is around 26,000. Not the end of the world if I get assigned, but of course I'd rather not. If I'm ITM 3 days from now, what would you say the chances are of me getting assigned? Of course there is no real way to predict, but as far as...

Ok, say for example 2008 crash happens to a put seller trying to close his short positions. Would he have any material difference in the probability of getting his close filled (at market, not limit) if he was selling SPY options rather than SPX options? Or in a case that drastic would he pretty...

I know that the SPX is known for not being the most liquid index for options trading....but for how large of orders is this the case? From your own personal experiences, how many contracts does it usually take before you begin to have troubles filling your options trades on the SPX? 5...