What if I am short ITM calls on an underlying that InteractiveBrokers cannot locate borrow? How will the assignment work?
Getting assigned on short calls
- Thread starter blueraincap
- Start date
IB might force-liquidate your positions. Check with IB.
- Which options and stock?
- This looks like one of those hypothetical questions that has no real-world solutions.
Just buy the underlying and sleep well. Easy.
You will be assigned short shares, then the rest is up to IB. Usually they’d give you at least the morning to close the position, but sometimes will let you keep the short shares for days. This may also depend on your account size. So no one can tell you what exactly will happen in your case.
No point if IB force-liquidated him and closed his short calls.
It makes you wonder how it would work if it were a spread. You're assigned on the short contract and can't get the underlying, and probably can't get the underlying if you exercise your long call. If that assignee didn't have shares, would the short obligation stay with you or be transferred to that assignee?
Glad I mostly trade SPY and QQQ.
Glad I mostly trade SPY and QQQ.
Assignments are random so it's highly unlikely that your exercising of the long calls won't get fulfilled. This is when the short-squeeze come in. Shorters will have to go to the market to pay whatever price that is needed to get the shares. Ask Melvin Capital. They should've had plenty of experience with that now.
CCIV options are rather actively traded and there were many shares to borrow before. seems like someone is withholding shares and the short fee rallied..Expecting to get assigned some shorts soon
Like I said before, ask IB.