AEM Vertical Put Assignment Question - futures io
futures io futures trading

AEM Vertical Put Assignment Question

Discussion in Options

    1. trending_up 709 views
    2. thumb_up 0 thanks given
    3. group 1 followers
    1. forum 2 posts
    2. attach_file 0 attachments

Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 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

AEM Vertical Put Assignment Question

(login for full post details)
  #1 (permalink)
Saint Louis, MO
Posts: 6 since Jul 2015
Thanks: 1 given, 0 received

I have a think-or-swim account.

I had a vertical put spread with a 27 strike AEM put sold and a 26 strike AEM put purchased. 11 contracts sold and 11 purchased. Both expired yesterday ITM. I was assigned on the 27 strike AEM. So I now have 1,100 shares of AEM. But the 26 strike AEM is not listed in my account as exercised, so I am in a margin call.

I haven't been able to get in touch with think-or-swim, the folks at TD Ameritrade weren't helpful, they just recommended calling on Monday, which I will do.

I went into the expiration day with the understanding that "Remember, on expiration, think-or-swim will automatically exercise any equity option that is $0.01 or more in-the-money." AEM closed at 25.16 on Friday, so my 26 strike AEM put was $.84 in the money, so I expected it to be automatically exercised per the policy above.

So I expected to be assigned, but I also thought that my 26 put would be auto-exercised, and the shares would net out, and I would lose $1,100 dollars minus the net credit when I opened the spread.

I did not expect to be long 1100 shares of AEM with an unexercised expired 26 put. Is it normal that my position is not up to date today, but will reflect the correct position on Monday? Did I make a mistake by not manually exercising my long option on Friday and just learn an expensive lesson?

Worst case I would sell the 1,100 shares on Monday at market price, but that would be around an $.84 per share loss that I didn't need (depending on how AEM opens), plus a wasted premium on a purchased option I didn't use.

Reply With Quote

Can you help answer these questions
from other members on futures io?
COTbase for quant trading?
Elite Algorithmic NinjaTrader Trading
Cross border fund flows / fx correlations
Treasury Notes and Bonds
Neurological explanations for trading Success
Psychology and Money Management
Trading Reviews and Vendors
Help Needed: TOS Options Chain IV & IMPL MOVE Calcul …
Best Threads (Most Thanked)
in the last 7 days on futures io
Battlestations: Show us your trading desks!
137 thanks
Want your NinjaTrader indicator created, free?
32 thanks
Big Mike in Ecuador
30 thanks
Saturday Morning Market Replay!
20 thanks
Selling Options on Futures?
19 thanks
(login for full post details)
  #3 (permalink)
Saint Louis, MO
Posts: 6 since Jul 2015
Thanks: 1 given, 0 received

So my account was updated as I expected later on Saturday. It was a bit unnerving to be in a margin call and think that my option didn't auto-exercise, but it all worked as I expected it to.

Reply With Quote

futures io Trading Community Traders Hideout Options > AEM Vertical Put Assignment Question

Last Updated on July 22, 2015

Upcoming Webinars and Events

NinjaTrader Indicator Challenge!


Battlestations! Show us your trading desk - $1,500 in prizes!


Importance of Finding Your Own Way w/Adam Grimes

Elite only

Journal Challenge w/Jigsaw


Copyright © 2021 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
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