Late option exercise of short option

Discussion in 'Energy Futures' started by heech, Mar 29, 2010.

  1. heech


    Hi guys,

    What's the latest that you guys have been informed of short option assignments, from your FCM?

    For example, I had some heating oil positions expire Friday OTM. The equity run/statements from that night reflected this.

    I was then informed today (Monday morning) right around 9 AM EST that in fact, one of these OTM options had been exercised, and I was assigned. Is this a normal amount of delay?

    I'm trying to figure out how to handle this in terms of accounting, as well. It's annoying that there are positions I had entered as gone, and now I have to reverse.
  2. Nobody has ever bragged about the "quality of service and experience" they have had while trading any New York-based futures contract. :cool:
  3. Curious as to how far OTM it was at settle?
  4. heech


    Not very, only slightly. Less than 0.5%.

    I knew it was a possible it might be exercised, but when I saw Friday night statements reflecting that it hadn't been... I thought I was in the clear.