The Traderszone Network

Published in TZ Latest News 9 April, 2017 by The TZ Newswire Staff

Call options on expiration: Pay out instead of assignment?

First of all, I have an Interactive Broker account and I use the Trader Workstation.

I started trading call options some months ago. Now I have a question about the execution of these option.

On expiration when the option is OTM it expires worthless, if it’s ITM the underlying stock will be assigned to my account automatically. But if I wanted to own the stocks, I would have bought them right away without the extra costs of the premium. So currently I sell the options before expiry.

In…

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