I'm short deep OTM NG puts, due to expire worthless on Monday. IB sent me the warning below, saying they may close the positions. But the link in the warning says OTM options will be allowed to expire worthless if expiry (Monday in this case) precedes the underlying First Position Day (Tuesday). So I assume that if the puts stay OTM all day Monday, I can just let them expire, and that the warning is just in case NG tanks and the options become ITM. Is that correct? --------------- WARNING: one or more futures or futures options in your account have an underlying for which IB cannot accept delivery. These contract(s) are approaching either first notice or expiration dates. If you wish to manually close or roll these positions, you must do so by the end of the current trading session. Otherwise, IB may close the position(s) on your behalf to avoid a delivery exposure. Please see http://www.interactivebrokers.com/en/trading/marginRequirements/physicalDeliveryLiquidationRules.php for more information on delivery restrictions.The underlying(s) are the following: NG
You are correct. I have found that you can just ignore the warning and let them expire out of the money and that is fine with them.