Yes .... I see now. If NFLX dipped below $445.00 and stayed above $440.00 then the trade could have ended up like the GOOG trade.
http://www.elitetrader.com/vb/showthread.php?t=51251
How to realize full profit from bull call spread
- Thread starter voltrader1
- Start date
Yes .... I see now. If NFLX dipped below $445.00 and stayed above $440.00 then the trade could have ended up like the GOOG trade.
http://www.elitetrader.com/vb/showthread.php?t=51251
12pm-3.30 pm
i had been trying to work the order all after noon.
bid never went over 4.40... i couldnt get a good mid at all after sitting on it for hours, ended up getting out at 4.55.
Well it's not exactly a pick'em scenario at less than a dollar's worth of vola on the shares and 3.50 ITM. Ask yourself if you would sell the 445 put digital with two hours to exp (all AH action) for 91/100. I probably would not, and definitely not so if I was concerned about my firm's risk dept closing it out on the last minute to the bell.
Obv the MMer disagreed with you.
So atticus/drownpruf, could I have let it expire and realized full profit and been ok without a margin call? due to the offsetting posistions?
im sure you have experience with ib letting bull call expire.
and if not, i guess i need to re-examine using call condors. because if full profit isnt able to be realized, then they're useless to me.
and there was no decent bid for the whole spread either, would have ended up worse price if i didnt just let the upper spread expire and sell the 440/445 for what I did.
im sure you have experience with ib letting bull call expire.
and if not, i guess i need to re-examine using call condors. because if full profit isnt able to be realized, then they're useless to me.
and there was no decent bid for the whole spread either, would have ended up worse price if i didnt just let the upper spread expire and sell the 440/445 for what I did.
No, you should not have been margined on the naked long. Always ask yourself if it is worth the effort or expense of getting neutral with shares in that scenario. If not then the 45 cents was a worthy expense.
I do not think it was worth the expense, as that is gonna add up over the year to a lot.
If I had 10 call condors posistion that would be 450$ taken away that should be mine.
I guess ill be going back to Iron's for those situations. Atleast I can get full profit from those.
No, I am referring to a 30 share short to get you neutral into exp. If you would not consider shares then you should cover. The iron is indentical. You are still naked short the five handles in the 445p in that scenario.
I think you have a lot of people confused. Where did the 445 put come from, is that a typo?
I thought this was a 440/445 bull call spread. Long the 440 call, short the 445 call.
You are an idiot. He mentioned the iron; in which the expiration risk would have been in the 445P of the bull put apread.
Nobody is going to give you strike-value prior to expiration. All MMers engage in discount "arbitrage" into expiration. This facilitation comes at a cost, in this case, 0.45. The experience will help to mitigate your EV going forward.