Hi I understand that those future contracts are non deliverables with IB, so they would be closed by tws before expiration. But what about the options on those futures ? I had no problem with GC options but reading messages on IB's platform regarding ZB short puts expiring today it seems one needs to close them before option expiration, yet the underlying for those same ZB options is ZB march, which is not expiring yet. Anybody here could clarify ? Thanks in advance
The answer has to come from IB... I don't know their reasoning, but it could be that they don't want any positions in the futures after the first notice date. That's a little paranoid, but not too unusual for a broker.
Actually some posters here trading those contracts might be more reliable than the first IB's rep I will get on the phone. Going through IB's website, it appears they want the contract to be liquidated on First position date , at least for ZB march, which falls next monday, and according to the link below, as the FOP expiration is today delivery still seems possible. I'm short ZB 150.50 puts btw, so otm, so i'm particulary reluctant to close them, anyway this delivery issue has kept me from selling options on those products during a long time, but now I tried, I'd like to keep all premium possible, as well as get a better picture for next time. https://www.interactivebrokers.com/en/index.php?f=deliveryExerciseActions&p=delivery March ZB contract details https://pennies.interactivebrokers....e=IB&conid=237838874&detlev=2&sess=1487927377
Yeah, so they just don't want you to have any positions after on or after first notice day. For March contracts that's Tuesday the 28th of Feb, but they make sure their deadline is a day before that, i.e. Monday. Why they can't let you enjoy your futures for the weekend is beyond me, but maybe it makes them feel better.
Finally I let the position run to expiration and the system didn't liquidate it, so it seems one can enjoy the futures for the week end if they are assigned, but it was not made clear by the violation messages I started receiving on thursday night.