Hi Has anyone experience to share on itm long options on euro stocks with IB ? Is there automatic assignment like on US stocks ? And is it assigned on the main exchange ? I suspect it is a simple automatic process but worry a bit with the international scope, as one can hold options listed in the German exchange (DTB) of companies listed in other European countries. I encountered the issue before and opted to sell the options before expiration but that was not necessarily the smartest thing to do, although the FTT in some jurisdictions as well as commissions upon assignments on Euro stocks according to IB's website favour selling those options more often than on US stocks. Anyone ? Thanks
I just did a search for you (ibkr option exercise european stocks) https://www.interactivebrokers.com/en/index.php?f=1567 ECC (Germany, Switzerland) For Equity Options Traded On Eurex And Cleared Through Eurex Clearing Ag (ECC): Stock options expiring in the current month that are more than 10 basis points in the money will be automatically exercised by the ECC without the need for any explicit instructions from the broker. Index options expiring in the current month that are more than 0.01 in the money will be automatically exercised by the ECC without the need for any explicit instructions from the broker. The ECC must receive "contrary intentions" through the Option Exercise window if you want to: Exercise a stock option that is in the money by 10 basis points OR LESS. Exercise a stock option or index option that is out of the money. --- When I trade options, even if obviously automatic, I still review the close ones and decide if I want to exercise or lapse and send instructions if close.
Thanks Eastern Warrior, most useful, below are the conditions fort stocks traded on euronext. I'm still a bit confused because looking at a Dutch stock (on Euronext) with options trading on Eurex (DTB), if I understand the contracts details properly CNET (Belgium, France,Germany, Netherlands) For Equity Options Traded On Euronext And Cleared Through Clearnet Sa (CNET): Stock options expiring in the current month that are more than 0.01 in the money will be automatically exercised by CNET without the need for any explicit instructions from the broker or its customers. Index options expiring in the current month that are more than 0.01 in the money will be automatically exercised by the CNET without the need for any explicit instructions from the broker or its customers.
don't trade dutch options so take what I say with a grain of salt. stick to the exchange rules and look at the exchange websites. if eurex, then eurex rules. if euronext, then euronext rules. Go to the source.