Will I be assigned?

spindr0 · Mar 21, 2009

Quote from heech:

Well, right, but we're only having this conversation because the option was ATM (and ITM for much of the week). Margin isn't really an issue.

That's true for anyone with the cash to margin the position. However, the OP indicated that he didn't have the 33 grand to margin the position... perhaps not realizing that margin is 50%. So for him, it may or may not be a margin issue and a possible margin violation.

I don't like surprises and this could be one of them.

rluser · Mar 22, 2009

Quote from spindr0:

Because I've been with IB for a long time, I don't remember if I had to request pre market trading approval. That may be one issue you have to contend with if you have never traded in pre and post market hours. Assuming that you don't need specific approval to do that, you should get up bright and early Monday to monitor your position.

If you do need approval and you don't have it, you may be in a bind

If approval is required it can be requested and approved via a checkbox in TWS configuration. As a recent account opener, I am certain I made no other specific request for such approval.

shazam75 · Mar 22, 2009

What a RELIEF! Just checked my account in IB and I have NOT been assigned!!

Thanks all for your kind advice and will not make this stupid error in the future.

Cheers!

spindr0 · Mar 22, 2009

Quote from shazam75:

What a RELIEF! Just checked my account in IB and I have NOT been assigned!!

Congrats on learning an inexpensive lesson. Well actually, cost free!

If you are in this position in the future (having a naked position that you want to close), early on expiration day, place an order to close with a ridiculously low offer (asuming that the underlying isn't moving against you). Sometimes you get lucky and it hits during the day's gyrations. As the afternoon progresses, raise your offer to something less ridiculous. In the last hour, get real and start splitting the B/A. In the last 5 minutes, prepare to execute at the ask.

dagnyt · Mar 22, 2009

Quote from shazam75:

What a RELIEF! Just checked my account in IB and I have NOT been assigned!!

Thanks all for your kind advice and will not make this stupid error in the future.

Cheers!

Congrats from me also.

I find it hard to believe a call 17 cents ITM was not exercised by everyone.

It's a good thing this happened to you. Valuable less at no cost.

Mark

spindr0 · Mar 22, 2009

Shazam,

One other thing...

Watch GOOG in the morning to see what life could have been on the other side of your expiration

FWIW, if it's not something that I trade regularly, when the trade is closed I delete the symbol and don't look back. There's nothing to be gained from woulda, coulda, shoulda. Focus should be on existing positions as well as finding the next trade.

johnnyc · Mar 23, 2009

Quote from dagnyt:

Congrats from me also.

I find it hard to believe a call 17 cents ITM was not exercised by everyone.

It's a good thing this happened to you. Valuable less at no cost.

Mark

no kidding, guess the buyer didn't have the $ to pay for the stock either

shazam75 · Mar 23, 2009

Quote from spindr0:

Shazam,

One other thing...

Watch GOOG in the morning to see what life could have been on the other side of your expiration

FWIW, if it's not something that I trade regularly, when the trade is closed I delete the symbol and don't look back. There's nothing to be gained from woulda, coulda, shoulda. Focus should be on existing positions as well as finding the next trade.

Hi

Actually i usually don't look at what would have happen - lucky i got away from this trade - so to me there is no point to look to see what would have happen - I just think it will open higher tomorrow and I was willing to bear the loss.

Cheers!

forex-forex · Mar 23, 2009

Quote from shazam75:

lucky i got away from this trade

Maybe not ............I would check your account first thing on Monday to be sure you have not been assigned.

--

erlewine · Mar 23, 2009

Quote from forex-forex:

Maybe not ............I would check your account first thing on Monday to be sure you have not been assigned.
--

Yeah and go a step further and call CS/option desk to confirm the other side abandoned them, it's very unusual.

Although it's not the norm I've had assignments pop up as late as 10:30am the following Monday (usually on commodities).