Options auto-liquidation times

[Adude81]

Serious discussion about auto-liquidation times for options. Yes, I know, If I carried higher balances, I would not run into this. I'm not here to debate that.

Schwab -
- pretty inconsistent. They have liquidated ITM options as early as 50 minutes before the close, no phone call or email, I am usually logged into my account all day.
- they don't usually liquidate anything that has value unless it is in the money
- I've had options go ITM money 2 minutes before the close and not notice until after the close - was able to call and put in a DNE.
- they seem to care a lot less about spy and qqq options, I'm guessing because of the 4:15 closing time, and don't usually auto-liquidate those

Robinhood
- a complete joke - will indiscriminately liquidate anything worth more than a penny 55 minutes before the close on expiration days. Not sure why they can't just do this 3-5 minutes before the close.

What times are some of the other brokers doing this?

A long time ago, when ING had American customers (maybe they do again, it's been so long) they had a DNE checkbox you could check and never have to worry about it. Is this an option anywhere?

 

[Robert Morse]

Adude81-At Lightspeed we do not have auto-liquidation. Any liquidation is done by the Risk Team manually. In most cases the Risk Team tries to contact the client first, except in the case of a large loss where the client is close to going negative. Active communication is key.

 

[Overnight]

"Any liquidation is done by the Risk Team manually."

OMM's liquidation team truly does it at light speed, manually. Here is footage of a recent account liquidation.

*snicker.* Merry X-Mas OMM!

 

[JSOP]

Serious discussion about auto-liquidation times for options. Yes, I know, If I carried higher balances, I would not run into this. I'm not here to debate that.

Schwab -
- pretty inconsistent. They have liquidated ITM options as early as 50 minutes before the close, no phone call or email, I am usually logged into my account all day.
- they don't usually liquidate anything that has value unless it is in the money
- I've had options go ITM money 2 minutes before the close and not notice until after the close - was able to call and put in a DNE.
- they seem to care a lot less about spy and qqq options, I'm guessing because of the 4:15 closing time, and don't usually auto-liquidate those

Robinhood
- a complete joke - will indiscriminately liquidate anything worth more than a penny 55 minutes before the close on expiration days. Not sure why they can't just do this 3-5 minutes before the close.

What times are some of the other brokers doing this?

A long time ago, when ING had American customers (maybe they do again, it's been so long) they had a DNE checkbox you could check and never have to worry about it. Is this an option anywhere?

Everything depends on the broker and its risk management policy. Some will auto liquidate by 4:00 PM on the option's expiration date with just flashing alert messages in the software prior to liquidation. Some will send you emails beforehand. I would suggest you to check with your broker to be sure.