correct...so call IB and complain. The SPXW options expired and settled Friday. SPX options that are monthly, settle am but expire Saturday, but their price should be zero too, since the CBOE and OCC has that as the settlement price.
Why would you want to trade at a broker that charges you an exposure fee? Are people really that brainwashed that IB is looking out for everyone's best interest here? It is all about adding to the bottom line at IB. I am sure they believe they can charge these added fees and traders will just bite the bullet. If they really wanted to be fair, they should redistribute the fees they collect from so-called risky accounts to the "safe" accounts. The fees are just going into IB's pockets. This type of exposure fee is really hard to find in the industry. Higher margins, yes, but exposure fees? What's next? Charges for excess volatility in account value? LOL.
IB runs a 30% stress test, but how much to you need to cover that stress test loss, 100%, 50%, X% to not be hit with a fee?
This is hard to calculate as it depends on how much your options are OTM from the start. I guess that you have to keep your margin level for the options below approx 20% of the portfolio value to avoid the fee. It is not an exact science because ATM options are hit less then OTM options, even though the latter have per definition less risk. I noted today that the risk navigator cannot calculate the exposure by contract any more and when you use 30% it now gives a N/A. So even their own system seems to consider this 30% percentage as ridiculous....
It is very simple. Any dollar amount on the stress test over your equity, you pay. If you don't want to get charged, reduce you positions until you are under the stress test, or change brokers.
Thursday, my equity was roughly 1/3 of the stress test and got hit with a fee Friday, cut down my positions, my equity is a little bit more than 50% of stress test, and no fee shows up on the 'Stress Test Report'
No fee on the report does not mean no fee. The fee is sometimes added later. It is important to see if you have a number in the 30% scenario on the exposure line. If there is a number, a fee will be charged based on that number.
You guys are having to jump through hoops, running stress test simulations to see if IB will shaft you with a fee or not. Are good brokers that hard to find? There are plenty of good brokers out there, maybe slightly higher commissions, but with much better customer service, no Nazi type behavior, and none of them charge an exposure fee. And I am sure none of them will use some blackbox to charge you extra fees out the blue.
The problem right now is tail risk. Most brokers are creating house rules to protect again big moves. I understand wanting to protected from stock moves, but looking at SPY or SPX up and down 30% is crazy. 1245