So I profited 820 dollars on a deep ITM options spread and received this email from Tastytrade

[taowave]

Dude,what arent you getting??

NWD spelled it out.

It's nothing personal,and has zero to do with you making money on the trade...

You are vastly under capitalized and in the unlikely event you don't/cant close out ,you are playing with their money,and they don't want to play that game..

No one likes getting kicked out of the sandbox...learn your lesson and move on..

P.S. Blue Water is right..Dirtbag move by you

Another self-proclaimed expert then, are we? Do you seriously think that just because you come in here with carefully constructed insult, that you think is so highly intelligent and makes you look smart (it doesn't) that you have some kind of authority in trading? Frankly, when I have a trade that made profit, and then my brokers takes issue with it, I call that suspicious. Anyone pretending that it's not are the foolish ones. Tastytrade in my opinion, are NOT professionals, otherwise they would understand that option spread trades are DEFINED RISK, paid for upfront. And assignment risk on cash-settled options, which is what I was trading, does not exist. So yes, the amount of ignorant people on here never ceases to amaze me. I shall await your no doubt, highly thought-out, well-timed, and remarkably intelligent response.

 

[taowave]

Spoke too soon..Off my game..

This post is the leading candidate for the Hall of Shame

No need to vote

Even more bizarre than that is how an idiot like you can spend all day on Elite Trader criticising others when you have most likely failed at trading yourself. What a dope.

 

[prc117f]

I'm 6'3" 240. PM incoming.

Edit: sent. Google my info.

when is this happening. Would be cool to see a live stream and wager on the outcome.

 

[poopy]

when is this happening. Would be cool to see a live stream and wager on the outcome.

He begged off as I am not in Europe. I dodged a bullet there!

 

[wxytrader]

I didn't miss anything - especially your pissy and gaslighting attitude.

They run their business their way. Not yours. They don't even owe you an explanation of what their risk department decides about your trade - but you clearly didn't bother reading that part of the agreement.

When you, or your sock puppet, or the idiot you're stanning for, lie and explicitly violate a policy that you've been warned about, you pay the price.

Since this isn't an actual question anymore - it's nothing more than you trying to defend your ego in order not to be wrong with progressively more stupid non-arguments - I'll be ignoring you from here forward.

What do you work for them or something lol. The system should reject the trade.

 

[poopy]

What do you work for them or something lol. The system should reject the trade.

No, no. You f*****g i***t. No.

You cannot require post-ex cash secured at the open of the trade, but!

1) There is no demand for the trade so facilitation will likely cost you MORE than the spread width to exit. To BTC. You HAVE to close the diagonal on LTD UNLESS you can carry the back end naked.

2) There is an equivalent spread, which we will call the synthetic put diagonal, which is the OTM call diagonal, same strikes. It's value is 0.01 when the ITM put spread is 4.99. The shit sums to 5. It's the time box or the roll.

There is no issue with expiration provided the thing remains OTM, right? I am referring to the call spread here; the synthetic put diagonal.

3) I really believe that you have some LD; profound ADHD, etc. Spectrummy? You need to read more and reply less.

 

[wxytrader]

No, no. You f*****g i***t. No.

You cannot require post-ex cash secured at the open of the trade, but!

1) There is no demand for the trade so facilitation will likely cost you MORE than the spread width to exit. To BTC. You HAVE to close the diagonal on LTD UNLESS you can carry the back end naked.

2) There is an equivalent spread, which we will call the synthetic put diagonal, which is the OTM call diagonal, same strikes. It's value is 0.01 when the ITM put spread is 4.99. The shit sums to 5. It's the time box or the roll.

There is no issue with expiration provided the thing remains OTM, right? I am referring to the call spread here; the synthetic put diagonal.

3) I really believe that you have some LD; profound ADHD, etc. Spectrummy? You need to read more and reply less.

We are talking about the email the OP received not the position itself. A short a diagonal deep ITM can be exercised at any time. The long option and the spread is irrelevant...you are essentially selling a naked put or call.

 

[taowave]

LOL..Let me guess WXY reared its ugly head....

Please tell him on my behalf that its really really hard to exercise European options..

No, no. You f*****g i***t. No.

You cannot require post-ex cash secured at the open of the trade, but!

1) There is no demand for the trade so facilitation will likely cost you MORE than the spread width to exit. To BTC. You HAVE to close the diagonal on LTD UNLESS you can carry the back end naked.

2) There is an equivalent spread, which we will call the synthetic put diagonal, which is the OTM call diagonal, same strikes. It's value is 0.01 when the ITM put spread is 4.99. The shit sums to 5. It's the time box or the roll.

There is no issue with expiration provided the thing remains OTM, right? I am referring to the call spread here; the synthetic put diagonal.

3) I really believe that you have some LD; profound ADHD, etc. Spectrummy? You need to read more and reply less.

 

[poopy]

We are talking about the email the OP received not the position itself. A short a diagonal deep ITM can be exercised at any time. The long option and the spread is irrelevant...you are essentially selling a naked put or call.

No. It's index. Can only be exercised at exp. They object to DITM spreads when an OTM equivalent spread is available which does not require an offset prior to the close. They MUST close him out before the bell or he will be holding the long option naked with no monies.

Doofus' doesn't cover before the close -> short leg assigned to cash -> he's got debit risk on 5 lot NDX. 5 lot. With a few hundred net liq. He could be carrying $100K in long premo.

I swear that I am done with you. Please Lord, let it happen.

 

[poopy]

OK, the reason that Chris emailed him is that it requires active participation by TT. They MUST cover it by the close at the market if he (OP) fails to cover the spread. It's that simple. What makes this maddening is that the fucking OP is too thick to understand what he's been told ad infinitum; that the equivalent call spread has the same payoff with NO requirement to cover before the close.