Does anybody know what happens in this scenario (naked call exercise and stock non-borrowable)? I cannot find this on the IB website. Up to now I only sold calls on larger stocks (which were probably always borrowable, I never checked). The default behaviour is that after fridays expiration you are short the physical stock. But what will happen if written calls on small, non-borrowable (in this example with IB) stocks are ITM at expiration? Will IB give away the shares anyway thereby creating a naked short stock position?