Ultra bond options

Discussion in 'Interactive Brokers' started by UVXY20, Mar 11, 2024.

  1. UVXY20

    UVXY20

    Just for the jollies I went to see how much the margin was on a naked UB call expiring on Wednesday, and IB told me this contract was not available for trading, even though there were what appeared to be live quotes. Anyone know why?
     
  2. newbunch

    newbunch

  3. UVXY20

    UVXY20

    I'm lost. The option in question expires Wed, and it's last trading day is Wed, according to IB. The underlying expires in June.
     
  4. mervyn

    mervyn

    there are two contracts, UBH24 and UBM24. FOPs on UBH24 has no volume, maybe not traded for a while. But if you look at the FOPs for UBM24, there are 40+ bid/ask volume. perhaps you are looking at the wrong option chain.
     
  5. newbunch

    newbunch

    The options expiring this month are "subject to the respective Close-Out Deadlines, as detailed here."
    Follow the link, type UB, then <Enter>.
    The deadline for long UB futures and options expiring in March was back on February 28. (For short positions, you have until March 19, but unless you are delivering the underlying, you better be out by February 28.)
     
    Lou Friedman likes this.
  6. UVXY20

    UVXY20

    Do all brokers do this?
     
  7. newbunch

    newbunch

    No clue, but unless you plan to take or make delivery, you should get out by the earlier date because the volume will dry up and the bid-ask spread will explode.
     
  8. No. But you have to have an ability to take delivery of or deliver bonds (since the notice period starts).