Can you share your experience of being exercised?

Quote from NoDoji:

So you sold naked calls in an IRA? Who allows that?
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You are right. In my 401K account in Fidelity, I can not trade long spread call (buy Call at lower strike price and sell the call at higher strike price for the same month).
 
Quote from stevegee58:

That's totally untrue, at least with IB. SPY doesn't cash settle so they can't just do that. If I were trading in an index like OEX it would cash settle then.

As long as you close out the short stock position in the IRA that same day, you're fine with the IRS.

BTW, I'm pretty sure I could have held that short all day except the margin used exceeded my account value. I strive to avoid this sort of thing but it happens. Ironically if my short call hadn't been assigned it would have ended OTM by EOD and I would have been fine.

That's just how it goes sometimes.
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But you shorted SPY Friday to cover assignment, and your shorts were closed Monday. I never thought IB would let you short stocks. ??
 
Quote from MathAndLogic:

But you shorted SPY Friday to cover assignment, and your shorts were closed Monday. I never thought IB would let you short stocks. ??
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I'm not sure where Monday is coming from. The short calls in my IC were assigned Friday morning and the resulting short stock position was liquidated 10 minutes after market open.

That's how it went down. Except for not making money on my IC this month, the actual assignment process was painless.
 
Quote from Nexen:Why would you ever want to get exercised ?
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To not get ripped off by a mile wide B/A spread on deep ITM options with a very liquid underlying just before expiration
 
Quote from DarthSidious:

To not get ripped off by a mile wide B/A spread on deep ITM options with a very liquid underlying just before expiration
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What he said. Plus I didn't *want* to get assigned. I wanted SPY to close below my short strike. It eventually did but it would have been less complicated if I hadn't been assigned.
 
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