So I profited 820 dollars on a deep ITM options spread and received this email from Tastytrade

The fuck is wrong with you? He can ACH his $1K out of the account. Now we're doing transfers from Robinhood?

 

Hopefully he at least got paid the $800 or whatever it was. Fair is fair.

He was doing deep in the money "diagonal" put credit spreads. He made the $800 in about 3 hours. Not a bad minimum wage.

 

I still don't understand the risk if these options were cash settled??? The max loss is the spread. Other than that the long option is irrelevant. It's only purpose is protection not profits...unless you let it run after the short option expires.

Why pay more for the long option in a diagonal versus getting a cheaper one at the same expiry? All it's doing is robbing you of premium anyway.

Instead of sending out petty emails because clients aren't policing themselves, one thinks you would write some simple code that says:

IF($ClientBalance<$CostOfAssignment then "reject";
else "success!"

lol.

 

It's not the cost you f****** i**** it's the risk on the back maturity due to assignment on the front.

 

Genius, it's not a acam.

 

This thread has made my Sunday morning, 10/10.

 

I was also going wirh 10 of 10,but after spending a couple of nanoseconds,I went with 0 out of 10

 

ITM vertical(s) = exercise/assignment fees. No price risk.
ITM diagonal(s) = assignment fees. Huge price risk.

 

Mr. Poop
Why do you see a need to be insulting in your comments? Can't you respond respectfully?