Does anybody know if 'immediate exercise' is now available through Interactive Brokers? i.e. If I am already short 1000 shares of WMT and exercised 10 WMT calls - would both transactions offset each other IMMEDIATELY, so that I am deemed to be flat as far as WMT is concerned (assuming ofcourse I have no other positions in WMT)? Thanks.
Yes. Assuming that you are long 10 Walmart calls and short 1000 shares of stock once you exercise the options, the positions go flat.
Freehouse, I can see that you are somewhat the resident expert on the Options Forum. However, before I start jumping for joy, may I ask "are you sure?". This thread will give some context (the real issue is in question 5 and the discussion that follows): http://www.elitetrader.com/vb/showthread.php?s=&threadid=24594 I know IB sent out an email a few years ago, saying this was now the case, but it seemed that they pulled it at the last minute. Anyway, thanks a lot!!!!