Short strangle legs were assigned even though price of underlying stayed within the price bounds?

No I meant what I typed. Those would have been the correct orders to enter if I was entering the type of position I thought I was . I was trying to enter a short strangle. For that, you sell a put with a lower strike than the offsetting call with a higher strike .

VolSkewTrader said:
Where was the stock when you sold the gut strangle? No way you sold those 280 calls that far under parity (QQQ range for Aug 26th was 285.83 - 292.22). You must mean the 288 or 290 Calls.
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Ok, well, whatever it was, I swapped 280 and 294 when entering the combo. It was just a short strangle, i dont know if it was inside or out i didnt look at that, i just know the commisions/cost was a lot less than the payoff, is there like some official bible of option terminology I should get?
 
destriero said:
smh.

Outside strangle: Buy(sell) OTM call; buy(sell) OTM put
Inside strangle: Buy(sell) ITM call; buy(sell) ITM put

The outside strangle is equivalent to the inside strangle (-) the difference in strikes.

XYZ at 100. XYZ 90/110 outside strangle is quoted at 2.25. The INSIDE strangle would be quoted at 22.25. The value of the outside strangle (+) the strike diff.

So the 90CALL/110PUT strangle is equivalent to the 90PUT/110CALL combo... you just need to subtract the $20 strike differential. It's not better because it's the inside. Sure, it looks good bc it's a larger credit, but you locked in a large loss out of ignorance.

-Inside strangle + outside strangle = box arbitrage. The mkt gives zero fucks what IBTWS calls it on their template. A same-strike strangle = straddle. Stop stressing about semantics and learn WTF you're trading. Or don't and lose your ass.
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Yes I see what you are saying. Thanks for the tips. Well, it wasnt a large loss, it was only a very small one.
 
destriero said:
Terminology isn't the issue. The two strangles are equivalent. Don't trade the guts. Trade the OTM version. Better yet, learn WTF you're doing bc you're driving blind at night without headlights.
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Yeah, I know that, I didnt fucking mean to trade the guts. the point was to enter a short strangle, earn the premium now and wait for the fucking things to expire worthless. i wasnt paying attention to the fucking TWS interface properly
 
Ok, maybe I did lose money on that, but I did do some other stuff, a risk reversal.. I just know my account is at the point I started it . Should I post my order history if you want to have a good laugh?

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That should have been a 280 PUT and a 294 CALL that I sold on aug 26th, my mistake was not making sure the call had the higher strike.. stupid, i know. im lucky it wasnt more costly
 
so the guts there is 6.88+5.24 which should normally be more than the width of the strikes which is 14 ? So if I intended to do that, it would have been dumb because its already below where it should be?
 
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