IB specific question for short position in ZB calls

Discussion in 'Financial Futures' started by DarthSidious, Aug 25, 2010.

  1. I am short ZBU10 call options and long ZBU10. The options would likely expiry in the money this friday. My thinking is that if I just let everything be, this weekend everything would flatten out when I am assigned the options. But just want to be sure... I have sent a message to IB and awaiting reply, but wanted to check with other IB customers. I like IB but they are known for doing some, well, strange things from time to time. I would rather not have some stupid IB machine doing trades in my account - I can do them better myself.

    I have done exactly this on ES options, but ZB rules seem to be different, but I am not sure why.

    IB documentation on rules:
  2. JamesL


    Could it have anything to do with the underlying being cash settled vs physical delivery that would make the difference?
  3. drenaud


    Although it is a physical delivery product IB may not treat it that way. IB has something called special close out rules. My bet is that would apply to this product.

    Exchange specs and IB specs can be very different.

    If unsure I would offset your trade and not let something funky happen.

  4. Assignment on a short call would give me a short position in the underlying future. Same thing in ES as in ZB. It's the assignment on the future that is problematic for IB. I just want to make sure. IB replied to me that my long position in the future would be offset by the short position created when the call is assigned. So all is well.