Damien,

In answer to your question about writing the 6th call; we would allow you to do that; you'd then have: 0 BTC and $115. The question is then "what next?" What I'm proposing is that any action that would take you negative would force the suggested flowchart to execute.

So, In our case, you want to go buy a $20 Put.

Now you have -1 BTC, since you don't have the money to pay for that call. At that point, we walk through the process.  In the situation I'm describing, you could get out of for less than $100 by just buying 1 BTC, and the flowchart would get there first automatically since you don't own any in the money calls (presumably).

Then you'd have (if BTC were at $10), 0 BTC net, $85 cash and some puts and calls.

It is head-spinning on the numbers. I agree a flow chart would make a lot of sense. We have a sort of state machine going here in describing it.

I think I want to build up from the bottom; the first thing that needs to be done is an auto-exercise, then a 'multi-stage' execute, that is, execute, exchange, execute again.

Then I can add closing out positions and the 'net requirements' calculation.

Once those are done, we can open the leverage up a little, say to asks on a certain strike/date.

We have a little time since Gox is down, but I'm eager to get the next level going for you guys.