The OP is mixing up terms. When he mentioned an "iron" are you and him on the same page? I don't think so. That 445 Put just came out of thin air.
no atticus mentioned the put because if i had an iron condor instead of a call condor it would be 440/445 put. You are confused.
I understand that. I didnt expect to sell it for the full 5.00 but man that was a wide spread. That really was free money to the MM. I guess i need to get into market making. And thanks for the inputs atticus. Although sometimes you are hard to understand ive learned alot trying to decipher your jargon. much appreciated. Just one last question, What would you have done in this situation?
The digital was ~90/100 at exp so I would've let it go into expiry, but it wasn't a slam dunk decision. You're welcome.
Nice to know I'm not the only one who thinks wistfully of the Atticus nick. Some wonderful advice proffered under that name.
well thank you mr bleeding obvious. When the OP says the spread is worth 5 - when clearly its not- and he is asking about the choices of letting both legs expire ITM then its a reasonable assumption to assume it is expiry and at or right on expiry. Otherwise he is simply complaining that he cant find liquidity at what he thinks is a reasonable price and is looking for an alternative suggestion - to punt that both will end ITM at expiry and that his broker will consider matching out his positions because he does not have enough to cover it. Closing it out is the sensible thing other wise he might not even get sufficient liquidity should the actual expiry day see the stock close just below his short strike. What the OP might not be aware (as he is asking these questions) is that at expiry even if the spread ends a few cents ITM and one might assume that everything will be matched out this is not necessarily going to be the case 100% of the time. Someone who is long your short options might not exercise them - for the same reason - insufficient funds, and you end up having no short offset. Small random chance but still a chance. If you think 4.45 for a $5 ITM on expiry day call spread is a suitable risk premium or spread for something like this on or at expiry then clearly its a good time to be a MM again. Though not sure which horse you are beating. I think you are just playing your normal angry self. Enjoy your week.
justrading ...... Could you explain drownpruf's/Atticus's last post? WTF is he talking about, and how does that answer the OP?
The call vert had a greater than 90% prob. of achieving max value, based upon the price of a digital put option struck at 445. The problem with using the digital is that the AH realized vola is much lower than during the day session, especially on a Friday. The valuation of the digital overstates the risk.