Scottrade options assignment processing
That notification can take any form. Pete, concerning assignment in debit spreads you said: Before you consider selling an option, get used to the idea that you are powerless. Notice to exercise and notice of assignment should be required to be delivered by Friday morning and no later. You might even get assigned if the call is scottrade options assignment processing at parity.
Not only do we have to notify everyone who got exercise notices, but also those who were auto exercised but dont have the money in there account to purchase there shares. I believe this is a typo. The OCC processes the request and uses a lottery system to determine which brokerage firms that have a short position will get assigned on the option. If you have many positions to monitor on expiration Friday, you can place orders to exit the options contingent on the stock trading above the strike price 10 minutes before the close.
If you are ever assigned on a short option, you have one day to exit the position same day substitution without having to put up any scottrade options assignment processing margin. Simply exercise scottrade options assignment processing long option - no margin required if you do it as soon as you are assigned. Is there data on this? As you can see, getting assigned on one of the legs of your spread did not increase your position risk, it could only reduce it. In any case, one way to mitigate this risk might be to distribute the trading volume among several brokers.
Will it simply show 2 expiring options or will it show a buy and simultaneous sale of scottrade options assignment processing number of shares in the underlying stock? First you mention selling the calls, then you mention buying the calls. Most of the time we have to call all of these customers back and that can be a long and painful process. In any case, one way to mitigate this risk might be to distribute the trading volume among several brokers.
Pete, thank you for providing valuable information scottrade options assignment processing options. I was short the call spread in SPY 55 times during March expiration. What happens if you dont have 50 percent of the dollar amount needed to buy that volume of stock to cover your short position.