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Boxing v. Closing Positions

Discussion in 'Options' started by AKJ, Dec 10, 2015.

  1. AKJ

    AKJ Well-Known Member

    Hello all,

    wondering if any of you have chosen to box a position as opposed to closing it, due to inability to execute at market prices?

    Suppose you have an ITM Put butterfly to close or roll, but cannot get executed. Would you consider selling an offsetting call butterfly instead, if you could get the order executed at a better price than what you would likely have the Put fly executed at?

    Would your broker require some margin to hold this position?

  2. ACS

    ACS Well-Known Member

    If it is options like RUT with no pin risk and the total costs including commissions are better then it would certainly work. I wonder if you really cannot get the put fly done, what are the odds the call fly will be easier?
  3. tom

    tom Administrator Staff Member

    I've had to do that trading ZB futures options when the bid/ask spread in DITM puts was unreasonable. The margin was zero after I set up the box so I just let it all expire.

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