Interactive Brokers Options on emini S&P

Discussion in 'Retail Brokers' started by trader60611, Jan 6, 2004.

  1. Interactive brokers says (on the phone):

    odd month options on emini convert to a front month futures contracts at expiration.

    front month options contracts "convert to cash" at expiration.

    Here is my question: Say I want to buy a feb or mar 1000 put on emini (obviously out of the money). I am perfectly happy if it expires worthless...but why would I buy an option that could actually expire "less than worhless"? Should I anticipate this possibility?

    On another forum, a trader suggests this may be just for In The Money options. That would make sense, but I am hoping someone can confirm all of this with experience.
  2. Why are you asking IB about contract specs over the phone?

    Go to the CME and read the specs directly ... and then you'll realize how silly your question is.
  3. Thank you for your kindness,patience, and experience. It really solved my problem.
  4. def

    def Sponsor

    just in the money's are "exercised/assigned" and converted to futures.
  5. Def

    Thank you so much for your simple, direct answer. It is not as easy to get "the truth" as some might think. May I ask two quick follow-ups:

    1) are the automatic conversions of In-the-money options to futures true of any monthly e-mini S&P options expiration, regardless of it being "Underlying/Quarterly (Mar,Jun,Sep, Dec) or not?

    2) May I assume that the IB "open posiition P/L" is meaningless if the option is out of the money and that my only cost is the initial premium? In short, will any oher "P/L" on the (out of the money) options positions just "go away" if I let the option expire?

    Sincere thanks,