How soon can I sell my stock after I exercise a call option with Interactive Brokers? Immediately? How soon does the underlying appears on TWS?
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IB Options Exercise
- Thread starter Humble Investor
- Start date
Do you want to exercise your ITM call before its expiry date? Why? You can just sell the option. Most probably the profit will be higher. If you do that you are also paying double commission. Buying ITM option in a very large volume and then exercising it is a trick that big guys might do it to increase buying pressure by those who were short the stocks but with clearing house in the middle, that does not work most of the time.
If you mean when the stock is available in your account when you have an ITM option , the answer is on Sunday afternoon or Saturday night on expiry day and you can sell it on Monday anytime (after 4AM ET for most stocks or 9:30 at regular trading hours). For ITM option which is at least 5 cents above strike price, you don't need to inform the broker that you want to exercise the option. It is done automatically.
The problem is that my options are adjusted options with ridiculous spreads. At the moment, it is much better to exercise the calls than sell them including commissions. it would be great if I can sell the underlying immediately. I don't want to have overnight position. I will only exercise the calls if I can sell the underlying immediately. ( I am talking about early exercise)
Do you mean the bid/ask spread by spread? If yes, it means that the options are not very liquid but lets say the stock is at $110 and the call option for $100 strike is at $9/$11. I believe if you put an order to sell your options at $10.05, it should go through right away.The problem is that my options are adjusted options with ridiculous spreads. At the moment, it is much better to exercise the calls than sell them including commissions. it would be great if I can sell the underlying immediately. I don't want to have overnight position. I will only exercise the calls if I can sell the underlying immediately. ( I am talking about early exercise)
Ok Thanks pal. Just for my knowledge, Do you know how soon can I sell my stock after I exercise a call option with Interactive Brokers (Early Exercise)? Can I sell the underlying immediately or do I have to wait for couple of days?
Next day. Options are exercised after the close. You can short stock now and settle the short tomorrow with the exercise instructions.