BTW, how do you exit an option that is ITM but with wide bid/ask spread? Trade is thin at the ITM end.
jhucti, You send in a limit order at the midpoint or a few cents off it and hope it is traded. Do this on Thursday afternoon with say a half hour to go. Remember that other retail traders will be also looking to buy and sell that contract (someone may have the other side of the spread in mind). If that fails to garner a fill in a few minuutes, then cancel and replace your order and take a few cents (usually about 0.10) off if you're selling. You can always exercise and sell, but there are some risks to doing that. It's usually wise to accept a few cents less and avoid those risks.
what are some margin requirements you get per average credit spread...example: ES currently at 1240 and sell 1190 put and buy 1170 put.etc...
thanks man...totally appreciate it...but...this is for normal equity options and not futures options like the ES (emini SP 500)
Two ways--one, IB calculates fair vale of the option. So, I have pllced limit orders for the fair value, and they get executed. Also, if you place a limit order halfway between the bid/ask, it gets filled. Since I have used IB, the ITM options get closed out without a problem. Is it because of IB? I don't know.