Options trading close to expiry

OptionsOptionsOptions said:
  • So 1 hour before expiry - not a few days as you stated before.
  • Then that makes perfect sense - you don't have enough margin.
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No, not 1 hour before expiry. As soon as their risk system spots "not enough margin" few days before expiration - they're closing positions when they please. I had this multiple times.
 
really? Do they just remind you of the exposure (not a problem, actually a good thing) or actually force close you 2 or 3 days before ,

facts only please
 
Well, I described it clearly already. If you want to prove it yourself, go, open small account with IB, deposit 2K, go all in on TSLA weekly options on Tuesday/Wednesday or whatever else is moving fast. Watch for "Account" button go yellow, then your position(s) might be closed rapidly.
 
Schwab doesn't usually liquidate if you are logged in and look like your are paying attention. They can also mark them do not exercise after hours if something expires in the money.
 
Adude81 said:
Schwab doesn't usually liquidate if you are logged in and look like your are paying attention. They can also mark them do not exercise after hours if something expires in the money.
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Your reading comprehension is very low. This thread isn't about expired options.
 
I think that most often it happens in those companies that try to somehow reduce the profitability of clients. And many people think that this restriction may be a big enough reason for you to change the company. On the other hand, if the company warned about it in advance in the user agreement, for example - then there is nothing wrong with it, it's just that these terms are not quite right for you. And you should be more careful next time. So keep an eye on this situation and if you understand that this is not good for you, then you should look for something else. In the end, you can always choose exactly what you need - that's your freedom.
 
jumpingfella said:
Hello,

Can somebody recommend a broker (preferably with API), which doesn't forcefully close your long options positions (expiring same week) when they get in the money?
Interactive Brokers is unfortunately exceptionally annoying for this one.
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TOS will also give you prior notice and not just liquidate instantly I believe. Check with them to be sure.
 
IB gives you post expiry margin warning. What is wrong with that? It won't liquidate because of post expiry margin deficit till the last day. When IB liquidates your position, it is actually saving your ass when you are numb and cannot decide what is good for you. I am not saying bad things about other brokers but as a person having an account with IB since 2004 and lots of experience with other brokers, I say IB rocks.
 
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