Assignment process (paper money) - futures io
futures io futures trading



Assignment process (paper money)


Discussion in Options

Updated by Quick Summary
    1. trending_up 1,076 views
    2. thumb_up 0 thanks given
    3. group 1 followers
    1. forum 1 replies
    2. attach_file 1 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

 
Search this Thread
 

Assignment process (paper money)

(login for full post details)
  #1 (permalink)
Boise, ID / USA
 
 
Posts: 9 since Apr 2015
Thanks: 3 given, 1 received

So I had a paper money trade on FXE

Sold 112 strike call
Bought 113 strike call

FXE closed on Friday at $12.51

End of day Friday I see a loss, as well as this morning (assignment was not showing). Then this evening, I notice an $86 profit.

This is what I think happened...

- I got assigned the 112 strike call at a stock price of 112.51 = $.51 ($51) loss
(I am now short -100 shares of FXE at $112.51)

- Price opens today at 111.75, and proceeds to close at 111.14

- I went short at 112.51, with current price of 111.14 = $137 profit - $51 loss = $86 net return


Now being currently short 100 shares of FXE is causing a $5557 margin requirement. With real money, if I didn't have $5557 available to cover this margin, would the broker have initiated a margin call and closed my position on Monday open at $111.75?
Or would they likely have margin called immediately on Friday at $12.51?

Edit - From reading further, I think that even if margin called on Friday, I would have 24 hrs to cover prior to the broker liquidating the position?
So I'm guessing if that is the case, they would have liquidated it sometime on Monday at market price?

Attached Thumbnails
Click image for larger version

Name:	FXE Exercised.PNG
Views:	18
Size:	7.3 KB
ID:	182934  
Reply With Quote

Can you help answer these questions
from other members on futures io?
help to convert from thinkscript to ninjascript
NinjaTrader
is there an easy way to obtain by code the price variation percentual
MultiCharts
Best platform for accurate backtesting
Platforms and Indicators
EQIX - Digital REITs - any experiences?
Stocks and ETFs
How to place NT8 indicator output into a grid, under each bar?
NinjaTrader
 


futures io Trading Community Traders Hideout Options > Assignment process (paper money)


May 19, 2015


Upcoming Webinars and Events
     



Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts