broker for us stock options?

[ashethen]

if I have no choice but to exercise my ITM options.

assuming its a PUT option. I should buy LONG the stock 1st, then exercise the option for a sure win right??

for example, I have a PUT option @ 625 TSLA
when TSLA drops to 622 and somehow i cant sell my option for whatever reason, the best way is to just buy TSLA at 622, then exercise?

or actually i should just wait until end of the day, in case tsla goes higher than 630?

how come can't sell
ITM options should be able to sell since there's intrinsic value

 

[theMKR]

how come can't sell
ITM options should be able to sell since there's intrinsic value

lets say it was in and out of the money every few secs/minutes....

for some stocks that move quite large movement its sort of not here not there?

 

[ashethen]

lets say it was in and out of the money every few secs/minutes....

for some stocks that move quite large movement its sort of not here not there?

It should still be able to be liquidated unless it is very far out of the money. Maybe your settings are wrong. If there's a bid price for the option you are selling, you should be able to sell it

Posted from PCWX using SM-N960F

 

[iantao99]

Was reading IB website, noted for USD based options, it is $0.25 per contract and min $1 per order. Low indeed.

However, as of 03Mar2020, the finance rate is 4.09%p.a. Is this updated?

CMC - Per transaction is $10, finance rate is 3.8767% p.a.

Any other platforms recommendations with lower USD finance rate?

 

[theMKR]

Asumming I am holding an option which is just in the money upon market close.

example: option put 100, the price is 99.

OCC will automatically exercise it for me, but i will get SHORT 100 shares.

what if other the weekend the price shot up 20% to 120. then i bankrupt max?

or i get the difference in cash?

 

[ashethen]

Asumming I am holding an option which is just in the money upon market close.

example: option put 100, the price is 99.

OCC will automatically exercise it for me, but i will get SHORT 100 shares.

what if other the weekend the price shot up 20% to 120. then i bankrupt max?

or i get the difference in cash?

Ask IB. I also want to know. I think you get to choose whether you want to let it expire or exercise it, it may not be auto exercise. My bull call spread expired in the money and I got the cash from the strike difference

Posted from PCWX using SM-N960F

 

[theMKR]

Ask IB. I also want to know. I think you get to choose whether you want to let it expire or exercise it, it may not be auto exercise. My bull call spread expired in the money and I got the cash from the strike difference

Posted from PCWX using SM-N960F

So u got cash and not positions rite.

Ok good. Then safe for me.

 

[ashethen]

So u got cash and not positions rite.

Ok good. Then safe for me.

Got cash because my long and short calls of the same underlying expired in the money.
Not sure what will happen if only the long call or put expires in the money

Posted from PCWX using SM-N960F

 

[Shiny Things]

Asumming I am holding an option which is just in the money upon market close.

example: option put 100, the price is 99.

OCC will automatically exercise it for me, but i will get SHORT 100 shares.

what if other the weekend the price shot up 20% to 120. then i bankrupt max?

You're short 100 shares at 100 and it's gone to 120. You've lost $2k.

If you don't want this to happen, buy the stock back just before the close; that'll net off against the option exercise and you'll lock in the $1/share profit.

Was reading IB website, noted for USD based options, it is $0.25 per contract and min $1 per order. Low indeed.

However, as of 03Mar2020, the finance rate is 4.09%p.a. Is this updated?

That seems wrong. IBKR's interest rates as of this morning are 2.59% on the first $100k, and they pride themselves on having the cheapest margin rates in the market.

 

[theMKR]

thanks all for taking the time to answering my questions.

Today i got option expiring again.

SPY Mar 09'20 285 Put.
Since now the market is at 297
I confirm dun want it to expire worthless again. So I just set to "Market" and wait for some idiot to buy it?

 

[ashethen]

thanks all for taking the time to answering my questions.

Today i got option expiring again.

SPY Mar 09'20 285 Put.
Since now the market is at 297
I confirm dun want it to expire worthless again. So I just set to "Market" and wait for some idiot to buy it?

dont think it will be worthless tonight

 

[theMKR]

oh shyt, i just realised.... my account actually doesnt have enuff cash to exercise the option on expiry

my buying power is only 53k (margin account)

i am holding 5 spy puts, assuming it exercise at 285, it will be 285 * 100 * 5 = 142500 in buying power.....

i need to deposit more cash now?

I dun want ibkr to liquidate my other positions just to fund this short position.

or it will exercise then immediately buy back the stocks?

 

[ashethen]

oh shyt, i just realised.... my account actually doesnt have enuff cash to exercise the option on expiry

my buying power is only 53k (margin account)

i am holding 5 spy puts, assuming it exercise at 285, it will be 285 * 100 * 5 = 142500 in buying power.....

i need to deposit more cash now?

I dun want ibkr to liquidate my other positions just to fund this short position.

or it will exercise then immediately buy back the stocks?

just close those puts before market close. can earn some time value too

 

[plustwo]

just close those puts before market close. can earn some time value too

bold of you to assume someone wants to buy those puts when you want to sell them

 

[plustwo]

oh shyt, i just realised.... my account actually doesnt have enuff cash to exercise the option on expiry

my buying power is only 53k (margin account)

i am holding 5 spy puts, assuming it exercise at 285, it will be 285 * 100 * 5 = 142500 in buying power.....

i need to deposit more cash now?

I dun want ibkr to liquidate my other positions just to fund this short position.

or it will exercise then immediately buy back the stocks?

sell at the open before the circuit breaker hits again

 

[ashethen]

bold of you to assume someone wants to buy those puts when you want to sell them

market maker should be buying them when there's still intrinsic value no?

 

[InterestingStuff]

oh shyt, i just realised.... my account actually doesnt have enuff cash to exercise the option on expiry

my buying power is only 53k (margin account)

i am holding 5 spy puts, assuming it exercise at 285, it will be 285 * 100 * 5 = 142500 in buying power.....

i need to deposit more cash now?

I dun want ibkr to liquidate my other positions just to fund this short position.

or it will exercise then immediately buy back the stocks?

when is the expiry? roll to the april and roll down , you will get some margin relief i think

 

[softwareengineer]

Hi,
Planning to buy US ETFs and some shares when there are dips. Which would be the cheapest broker with easy fund transfer too? Please advise

 

[binary_0011]

you have to customize it to suit your style

This is my customized one to create my options spreads. add tabs by clicking the + button below then click the 'new window' button on the top left to add whatever instruments you want into the main window and resize it so everything fits. there's a chain icon in every instrument window on the top right to link all the instrument windows together if you need.

how u link from imgbb huh?my link the img always not full resolution on.

 

[Shiny Things]

Hi,
Planning to buy US ETFs and some shares when there are dips. Which would be the cheapest broker with easy fund transfer too? Please advise

If you’re an active trader—if you trade more than once a month, if you buy more than about $1000 USD a month, or if you have more than USD $100k in assets that you’ll park in there—IBKR is a great pick. Otherwise, Stanchart is surprisingly good.