What aren't all options cash settled?

[cesfx]

It would make no sense to have it all cash settled to satisfy a few retail punters by removing all the possibilities used by most option traders like physical deliveries, synthetics, hedges and other strategies.

 

[SunTrader]

Yet another useless living in a bubble why (or this is better than that) topic.

 

[Sergio123]

I prefer American style shares settlement. I use early assignment as an indicator.

I know how to convert my shares to a cash position and/or another options position after an early assignment too.

 

[mervyn]

I prefer American style shares settlement. I use early assignment as an indicator.

I know how to convert my shares to a cash position and/or another options position after an early assignment too.

well what's the logic. when you are assigned, you are pretty much losing money, that's why the counterparties assign to you. if you are lucky to have enough cash, it makes no difference.

 

[Sergio123]

well what's the logic. when you are assigned, you are pretty much losing money, that's why the counterparties assign to you. if you are lucky to have enough cash, it makes no difference.

The logic is risk management into the future....not against the past.

I always hold some cash just for trade management.

 

[mervyn]

The logic is risk management into the future....not against the past.

I always hold some cash just for trade management.

when you are assigned, it is already in the past tense.

 

[Sergio123]

when you are assigned, it is already in the past tense.

Sure is, and you got assigned in 100 * delta 1's.

 

[wxytrader]

I prefer American style shares settlement. I use early assignment as an indicator.

I know how to convert my shares to a cash position and/or another options position after an early assignment too.

This is just a ridiculous statement you want to be forced into an assignment you likely can't afford and will be placed on margin? There's nothing good about the American style options. They should be discontinued. I only trade xsp for this reason because credit spreads are not defined risk on American style options.

 

[cesfx]

You are not always losing money when assigned. You can be assigned or manually excercise any itm long and be positive.

I like to trade cash settled, but with xsp you are leaving a big chunk % between spread and commission. SPX rules.

 

[wxytrader]

You are not always losing money when assigned. You can be assigned or manually excercise any itm long and be positive.

I like to trade cash settled, but with xsp you are leaving a big chunk % between spread and commission. SPX rules.

Just sold a weekly 4715/4720 call.

Hey on late Friday, do market makers factor in theta decay over the weekend so you are basically paying/receiving the same premium as you would on Monday? Or do you get the benefit of the weekend theta decay in return for the risk? If so then Whoo hoo! because I prefer hold positions after close when all the fun happens so this would make it even better.