It was only 10 @ .11 cents a contract. But still i watched 100$ die and then at 12:50pm PT i see $SPY into the 32 dollars and was a bit perturbed. Guess there is a "Dont do that option" i wasn't aware of. Lesson learned. Glad i'm starting small.
Edit: 562C my strike price was .07 closed at .02
$SPY. My 32C options were forced sold 45 minutes before market close
byu/MetaCitizen1 inoptions
Posted by MetaCitizen1
5 Comments
Let me guess, Robinhood?
If you don’t want your contracts closed early, trade cash settled ones like SPX or XSP.
In the absence of evidence that you’re paying attention, brokers will routinely close out positions at risk of exercise/assignment if the account can’t support it.
Sometimes, just having a sell order in place will keep them from closing you out. The best bet is to call the brokerage and ask that a note be placed on the account letting them know that you’re watching and will be closing the position yourself. You can also ask them to set the “Do Not Exercise” flag on long options if that fits the situation.
Use SPX, as another poster recommended.
Also, not sure what strike you’re referring to. Spy closed around $563 today, not $32.
Robinhood? Because that’s what they usually do especially if you don’t have the money to take full assignment.