Why interfere with a trade that has no risk to it, from their perspective? There's no risk for the broker since your account holds the shares available for delivery definition of covered , for if and when the options you wrote sold are exercised. And buyers of those options will eventually exercise the options by expiration if they remain in-the-money. There's only a chance that an option buyer exercises prematurely , and usually they don't because there's often time value left in the option.
That the option buyer has an ahem "option" to exercise is a very key point. You wrote: "I fully expected my position to be automatically liquidated by whoever bought my call". That's a false assumption about the way options actually work. I suggest some study of the option exercise FAQs here:. Perhaps if your position were uncovered — i.
Whereas, in a covered call situation, there's really no reason for them to want to interfere — and I would consider that interference, as opposed to helpful. The situation you've described is neither risky for them, nor out of the ordinary. It is and should be completely up to you to decide how to close out the position. Sign up to join this community. The best answers are voted up and rise to the top. Stack Overflow for Teams — Collaborate and share knowledge with a private group.
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Learn more. Covered calls: How to handle this trade? Ask Question.
Asked 9 years, 11 months ago. Active 2 years, 5 months ago. Viewed 3k times. My questions then are this: Am I the person responsible for liquidating this position? Improve this question. Bob Baerker If the expiry date is passed, and option expired in the money, then it is too late to do anything.
Writing options in a TFSA? Advisable? - Forums
Personally, I would just let the stock be called away since you collected some premium and also made some profit on the stock. Technically speaking, you actually made the max profit possible with a covered call. Add a comment. Active Oldest Votes.
SEC Charges Interactive Brokers With Repeatedly Failing to File Suspicious Activity Reports
If the option hasn't expired, maybe the stock will even fall again and you'll keep it. Improve this answer. Havoc P Havoc P 6, 22 22 silver badges 29 29 bronze badges. Ralph Winters Ralph Winters 3 3 silver badges 7 7 bronze badges. The OIC is a somewhat definitive source for this kind of information and I like their learning materials. Anyway, your choices generally are: leave the options and shares be, while shouldering some downside risk in order to capture remaining time value premium by expiration, or buy back the options you wrote Although discount brokers are known for offering less in the way of research and support, many offer free access to research and trading tools designed to help their investors make better investment decisions.
Many of these tools come free just for having an account. Interactive Brokers' Options Analytics tool allows you to explore an options contract from the perspective of profitability, max gain or loss, and view the "Greeks," which are automatically calculated next to each contract. These tools can be especially useful for investors who use more sophisticated options strategies. After making a minimum deposit, investors will be able to complete basic options trades. More complicated strategies and those that involve higher risk -- selling naked puts or calls -- will typically require a higher equity balance, and minimums are subject to change depending on the brokers' assessment of the risk of each trade.
This may make it less attractive to people who don't intend to keep a high balance or don't anticipate trading frequently. Interactive Brokers is designed with the active trader in mind. Its commission schedule favors active options traders, as well as those who hold options until exercise or assignment, as it doesn't charge a fee for either event.
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