You would still pay the dividend, but the puts would drop by the same amount. You have no risk with this position other then being synthetically...
Just to note, I currently use this system and am very happy with it.
His account would be debited for the dividend, but his short puts would decrease in value offsetting what he pays out in the dividend.
My positions are always netted out the next day. Marking buy (or sell) to open or close has never seemed to matter. The one exception has been...
You are synthetically short the 135 calls as if you buy them you have no risk in the position. Without these calls, if SPY goes beyond 135, you...
If you want to exit the position, put an order in as a spread. Although the quoted market for these options are fairly wide, the inside market...
SPX weeklies are already traded on the CBOE's hybrid system, unlike the the regular SPX options. They are PM settled.
SEC finally approves SPX pm settled options to trade on C2. http://ir.cboe.com/releasedetail.cfm?ReleaseID=603185
Really interesting stock to look at. Thanks to Deltahedge for posting. It looks like the options are pricing the stock at less than 10cents...
With the stock at .75, the 1 calls that he is buying are out of the money. If he exercised them, he would be buying the stock at 1.
What you are missing is that this is a very hard to borrow stock. If you sell these calls, there is a good chance you will be assigned (they are...
Often for a hard to borrow stock this is a much better way for someone to "buy" the stock. You sell the put (as you did) and if you want to...
Absolutely agree, but the broker may have a policy of auto liquidation if the account has negative equity. One would hope there would be a manual...
Here's how it can happen. You are long an oex 500 put and short the 495 put. (This is a single listed product so easier to happen) The 500 put...
You may also want to look at the SPX weekly options. They are traded electronically (monthlies are traded in the pit) and have pretty tight...
HuH? How is there any risk? If the OP is assigned on his short call leg (call vertical), he will have short stock against his long call. If he...
Here is a link to the the CBOE rules talking about this subject...
Not necessarily. The best way to tell if a call should be exercised for a dividend, is by looking at the corresponding put and the cost of carry...
Very recently opened an account at TOS and all the sheets I get are from Penson. Check to open account was made out to Penson, so I dont think...
Would think or swim be considered an IB for Penson?
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