Which just goes to show that there's more than one fool on this website! The fact that you have a few people who agree with you doesn't change the rules of the OCC, which is what controlled the situation. The OCC says that any option more than $.25 in the money will be exercised unless they are notified prior to expiration NOT to exercise. That's what Dev17 did not do. And therefore they were exercised, thus setting in motion the events that later happened. Whether one guy agrees with you, or 10 guys agree with you, it doesn't change the OCC rules.
In fact, all brokers are bound to operate within the OCC rules. It's really that simple. And there is no online broker in the US that is going to spend ANY money telephoning a customer to tell him anything.
This is completely irrelevant to the situation as it applies to the OCC, and/or IB, or any other online broker. The actions of Dev17 or lack thereof set in motion all of the events that took place. If that caused an excess contribution to be made to his IRA, then it's an additional matter that he should have considered when he a) bought calls in his IRA b) failed to understand the rules of the OCC and c) failed to notify of his desire not to exercise.
Matter of fact, let's say that when Dev lost that $9000, it caused him to not make his car payment which then caused his car to be repoed. Would you like to blame IB for that too? Perhaps they should have considered the financial pain that poor Dev would be involved in if he lost that $9K. LOL.
Please! If you're going to trade options then you're supposed to know the rules. In fact, I think if I recall you sign an agreement that says you read the prospectus, which sets forth the OCC rules. So when you ignore the rules you get to experience the problems all by yourself. That's how the law works in the US.
OldTrader
