IB does the expiration on Friday. I got flagged as a PDT there because some option positions I opened on Friday-before-expiration-Saturday expired worthless and the act of expiration got counted as a day trade.
FWIW... Ameritrade sends email a couple days before expiration warning us to have enough cash, positions, or buying power to cover any exercises or assignments, and says they "reserve the right to liquidate on the final trading day before expiration if the situation warrants."
Here's another interesting one. CYBX was halted today about a half hour before the close, at $44.98. Then it was announced that the FDA approved its device. It's still halted. Indications are that if it resumes trading today, it'll trade at about $50. People who hold July $45 and $47.50 calls are wondering if they should elect to exercise them before their brokers' cutoff times this afternoon.
======================== Developer17; a] Most of us have traded to large also & paid for it; and the probabliities were certainly in your favor partly by trading with main trend !!!!! Of course if the 9k/16 contracts is a small part of total trading funds then most of us are wrong in assuming you're trading to big. b]As far as a securities lawyer ,like to get 5 or 10 free estimates; prefer contingency fee , probably will not get that??? At least for sure get a hi-lo $$$estimate; & hourly fee with no idea as to total cost is NOT acceptable to me. Have cut a loss on a lawyer or mortgage broker also. c]Sir curNewton you had some good points and also the CBOE is part of1888options.com [options industry counsel] which sells books warning about last 2 weeks/expiry. d] Think you are maybe right on cash account living its name; but thats common bank/brokerage practice to take money out of 1 account to balance the other , probably signed permission to do so, with opening bank/brokerage account. e-ego] Would be extra careful with lawyers whose interests diverge from yours & are glad to help you to get your EGO involved; & perhaps bill you reguardless of arb panel results. In a multitude of counselors there is safety-Solomon-trader king
Folks, IB moved the funds out of my other account to adjust the negative balance in the IRA. I have had a regular trading account with IB for almost 5 years and regret ever trading with them. They have always been good in the past but treated me with cold indifference when I needed them most. I have decided not to pursue any kind of legal action and make the lawyers rich, but have decided to share my experiences so that others can benefit from it. THanks to eveyone for their support and valuable suggestions.
YIPES!!!!!!!!!!!!! Thats a helluva story. If they moved money from a regular a/c to a IRA a/c, AT WILL & WITHOUT YOUR PERMISSION, that has to be one wild tax question for you. Is there a legal precednce for this or an IRS opinion? I'd love to see it. If you're already maxed out how much you can put into IRA type a/cs and move yet even more, whos responsible? Did they move capital, trading profts or what? You need a lawyer my friend, this is a growing nightmare.
I think the only issue that remains is whether IB will count this forced transfer as an IRA contribution (and generate the appropriate IRS records) or not. If they don't then there is no issue, you don't report it, they don't report it - the IRS never needs to know about it, case closed. Unfortunately you wont know for sure until next year if they are going to notify the IRS. If they do notify the IRS and presumably it exceeds the maximum IRA contribution for this year then I imagine you will be hit with penalties. http://www.irs.gov/publications/p590/ch01.html#d0e7378
Quote from winter: I think the only issue that remains is whether IB will count this forced transfer as an IRA contribution It's not up to IB. Whether they generate the paperwork or not is perhaps in question, but that doesn't affect what the law requires of you (d17, that is). He needs to ask the IRS.
The question is what does the emphasized sentence in the IRS extract mean? The IRA will have zero value at the end of the year. There are no excess amounts remaining "in the account." An interesting question which I'm glad Developer17 has to find out the answer to, not me!
maybe he should be happy ib can replace the money in the ira and not make waves or it could cost him more money on top of the fact that losses in an ira are not deductible. if it were me i would accept my lesson and be quiet before it gets worse.