Dude,what arent you getting?? NWD spelled it out. It's nothing personal,and has zero to do with you making money on the trade... You are vastly under capitalized and in the unlikely event you don't/cant close out ,you are playing with their money,and they don't want to play that game.. No one likes getting kicked out of the sandbox...learn your lesson and move on.. P.S. Blue Water is right..Dirtbag move by you
Spoke too soon..Off my game.. This post is the leading candidate for the Hall of Shame No need to vote
No, no. You f*****g i***t. No. You cannot require post-ex cash secured at the open of the trade, but! 1) There is no demand for the trade so facilitation will likely cost you MORE than the spread width to exit. To BTC. You HAVE to close the diagonal on LTD UNLESS you can carry the back end naked. 2) There is an equivalent spread, which we will call the synthetic put diagonal, which is the OTM call diagonal, same strikes. It's value is 0.01 when the ITM put spread is 4.99. The shit sums to 5. It's the time box or the roll. There is no issue with expiration provided the thing remains OTM, right? I am referring to the call spread here; the synthetic put diagonal. 3) I really believe that you have some LD; profound ADHD, etc. Spectrummy? You need to read more and reply less.
We are talking about the email the OP received not the position itself. A short a diagonal deep ITM can be exercised at any time. The long option and the spread is irrelevant...you are essentially selling a naked put or call.
LOL..Let me guess WXY reared its ugly head.... Please tell him on my behalf that its really really hard to exercise European options..
No. It's index. Can only be exercised at exp. They object to DITM spreads when an OTM equivalent spread is available which does not require an offset prior to the close. They MUST close him out before the bell or he will be holding the long option naked with no monies. Doofus' doesn't cover before the close -> short leg assigned to cash -> he's got debit risk on 5 lot NDX. 5 lot. With a few hundred net liq. He could be carrying $100K in long premo. I swear that I am done with you. Please Lord, let it happen.
OK, the reason that Chris emailed him is that it requires active participation by TT. They MUST cover it by the close at the market if he (OP) fails to cover the spread. It's that simple. What makes this maddening is that the fucking OP is too thick to understand what he's been told ad infinitum; that the equivalent call spread has the same payoff with NO requirement to cover before the close.