Say you were long ES futures and sold short covered calls for the big expiry friday tomorrow. And say those calls are now deep ITM. So futures contract settle in the morning according to the SOQ price calculated during early session. But FOP settles at 8pm that expiry date based on SOQ price of the contract. Does that mean you turn from long contract and covered call to being naked short a call during the day? Because the futures settle out first and is gone? I mean in terms of the impact on margins. Short options are heavily penalized on margin by say IB whereas covered options, or even just a futures contract is not. For example, I think it takes twice as much margin power to hold a naked short options than holding the underlying contract, which doesn't make sense as you carry the same risk but that's how IB does it.