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Question: If I increase my autotrade option trading amount to $10,000 per trade, but already have qty 8 of the RUT Dec 670/680 Bull Put Spread that was placed in my account when my autotrade amount was set to $8,000/trade, should I expect the autotrade service to know to handle only 8 contracts, for example if we were forced to roll the RUT Dec 670/680 bull put spread into January?
Question: It seems that the inside short legs of the RUT iron condor that we opened for December span 20% (e.g. 790 short call and 660 short put). The % distance between the short legs for the SPY iron condor span only 12% (131 short call vs 117 short put), so theoretically one side of the SPY iron condor (i.e. one of the credit spreads) is more likely to go ITM (in the money); is this the case, for these alternative investments?
Question: I see that you closed out 1/2 of our RUT Feb 840/850 bear call spread position on Thursday, the week of expiration, in our autotrade accounts. Can you please explain why you closed out this spread even though the underlying RUT index was trading safely near 834? The RUT index seemed to be safely below our short RUT Feb 840 call.
Question: Hypothetically, for a credit spread options trading strategy, if the RUT climbs and closes at 845 on Thursday, Feb 17th, the day that it ceases to trade, and then opens at 839 on expiration Friday, Feb 18th, did our RUT Feb 840/850 bear call credit spread option expire in-the-money (ITM)?
Question: Why don’t we open the entire iron condor at the same time? It looks like you tend to open credit spreads individually, focusing on one side of the iron condor at a time. Why?
Question: I’ve been watching the trades for a few months and would like to try one of my own now. I understand that you recommend when starting out to start small, with at least $1000 and preferably start with the RUT. Say I sell the RUT Feb 680/690 bull put spread. Am I done for the month until you say to sell the Bear Call Spread to complete the iron condor, or do I close out the existing 680/690 bull put spread before opening the next trade?
Question: I’m a current autotrtading customer with MCTO. I have $20,000 of available cash in my account and I’ve set my autotrade rule to allocate $4K per trade. I see that you recently opened a SPY Dec 108/111 bull put spread, which is a 3 point wide spread. If I’m correct, this spread should require $300 of maintenance. Because I’m allocating $4k per trade, I was expecting 13 of the SPY spreads to show up in my account; however, 14 were openened. Please explain why I got 14 of these spreads instead of the 13 that I was expecting.
Question: Given that the SPY is essentially 1/10 of SPX what is the point of having spreads on both? You need to buy and sell 10 times as many options on SPY to have a trade equivalent to a SPX credit spread so the commissions are worse. The tax treatment is worse. And the options are American, so there is at least the possibility of being stuck with early assignment on the short options.
Question: Having a May RUT 550/560 bear call spread in one account and a May RUT 560/570 bear call spread in another account is exactly the same as having a single May RUT 550/570 bear call spread. The Profit and Loss is exactly the same. The net Greeks are the same. The margin required is the same as the total margin required for the two separate accounts. So it makes no sense to have two accounts. Just keep the net position in one account.
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