OPtionshouse closed my expiring position without my consent

You must be referring to you. Calls assigned and your long not exercised. You are short 12K shares of SPY on Monday if that were to occur. FSU outlined the ways it can happen and it has happened countless times in the past. And yes, they will continue to do so if you are within a handle of the strike on LTD.

I was long a box and got an alert that I was over 30x gross securities value. It was a glitch, but the platform could have liquidated the box at mkt (>10K contracts). Obviously they are acting prudently.

You're an idiot, btw.

 

Yeah I know. I made over $200K last year being an idiot.

 

Its not what you made last year, its understanding your risk to the firm. You talk about the maximum risk of your spread, but that is NOT your maximum risk. As I mentioned in my previous post, there is a chance that your short calls could be assigned, something that you have NO control over. This could happen even if they are out of the money on the close (the options can be exercised until 530est.).

I agree they could have called or emailed you with their intention to cover this risk for you, but that wasn't required.

 

You really are trading WAY out of your level of expertise.
Look up exercise risk and spend an hour thinking about it.
You should have closed the position yourself, but because you're an idiot your broker was forced to do it for you. They protected your ass (and theirs); you should be grateful.

 

http://www.optionshouse.com/risk/expiration/

 

I cannot fathom that we're having a discussion about some clown who is bitching about his penny short being covered into expiration.













...

 

Then why are you posting?

Must be your narcissism acting up again. http://en.wikipedia.org/wiki/Narcissism

 

You are correct. You can be assigned even if OTM, however it's not a violation to get a margin call. Regulatory margin calls can be met next day with a wire.

1245

 

Really? Explain to me what happens if the short call expires ITM but the long call is OTM. Your broker would sell short 100X shares (per contract). Now you're short a big bundle of stock -- in this example, over $2M worth -- and you're at the mercy of market forces until you can buy those shares back.

That was my point about "notional value". I think a lot of people don't understand verticals, but it's not who you think it is.

 

Exercise the long calls at $196.00