![]() ![]() ![]() You must also use the TWS Option Exercise window to instruct the clearinghouse to exercise an option contrary to the clearinghouse's accepted policy on an options Expiration day (e.g., Expiration Friday for US options). Use the Option Exercise window to either: (i) exercise an option prior to expiration, or (ii) deliver "contrary intentions" to the clearinghouse for the options held e.g., The Options Clearing Corporation ("OCC") for options traded on U.S. Should manage your risk and your account accordingly.įor more detailed information, and examples, of delivery restrictions, please click here. In order to avoid this scenario, you should carefully review your option positions and your account equity prior to any ex-dividend date of the underlying and you Suffer losses or incur an investment result that was not your objective. Likewise, if IB liquidates some or all of your spread position you may This scenario and you are not assigned on the short call(s), you could suffer In the event that IB exercises the long call(s) in Have sufficient equity to satisfy the liability to pay the dividend or to satisfy The short call(s) is (are) likely to be assigned and b) your account would not Some or all of the spreads - if IB, in its sole discretion, anticipates that: a) Liquidated the spread or exercised the long call(s), IB reserves the right to: i)Įxercise some or all of the long call(s) and/or ii) liquidate (i.e., close out) Underlying) prior to an ex-dividend date in the underlying, and if you have not In the event that you are holding a call spread (long and short calls in the same Accounts determined to violate the broker's margin requirement due to the projected effect of settlement may be subject to a series of protective actions on the part of broker, including: liquidation of expiring positions on the last trade date lapsing (non-exercise) of long in-the-money options immediate liquidation of underlying positions subject to delivery on/after the option last trade date liquidation of positions necessary to resolve a post-expiration margin deficit and restricting the account to closing transactions. To protect against these scenarios as expiration nears, the broker will simulate the effect of expiration assuming plausible underlying price scenarios and evaluating the exposure of each account after settlement. The broker does not support option exercises, assignments, deliveries or other effects of settlement that the broker determines may result in undue risk or operational risks/concerns. (send a ticket and call Customer Service) The broker must receive an Exercise Request by: ![]()
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