Interactive Brokers Options

[newguy05]

Quote from jwcapital:

I wen through the process in March. First, the option expires in the money and it is automatically exercised. You will be charged a commission for the exercised option. Then you will be charged a commission for selling your existing ES contracts. You will be flat. The fee si the same as a commission and with IB, the fees/commissions are neglegible. If you close out both the ES and call, you have to pay commissions anyway. At this point, I would just leave things alone.

jw, is es mini sp500 cash settled always? if you are short 1x itm april call option on the june contract. Upon expiration, will you have short 1x june contract or does IB just deduct money directly from your account to settle the assignment and you end up with no positions.

thanks

 

[jeb9999]

Quote from newguy05:

jw, is es mini sp500 cash settled always? if you are short 1x itm april call option on the june contract. Upon expiration, will you have short 1x june contract or does IB just deduct money directly from your account to settle the assignment and you end up with no positions.

thanks

Only the quarterly options and futures are cash settled. The in the money options for the other 8 months settle into the underlying futures contract.

From CMEGroup website:
"Option exercise results in a position in the underlying cash-settled Futures contract. Options which are in-the-money on the last day of trading are automatically exercised. QUARTERLY OPTIONS are exercised into expiring cash-settled futures, which settle to the SOQ calculated the morning of the 3rd Friday of the contract month. SERIALS are exercised into underlying cash-settled futures at their closing price on 3:15 p.m. on the 3rd Friday of the contract month"