Hey guys, I’m sure everyone knows about the automatic close out process RH implements to protect themselves. I get why they do it, as well as other brokers. I have a question for you guys as I am looking to learn.
Today I had a SPY Put Credit Spread with strikes $556/$555. RH closed the position at 3:45 PM EST when spy was $561.47, over $5.00 out of the money. I was surprised this happened, can someone more experienced than me tell me if this is unusual? I have never had a broker auto close a position this far out of the money on a spread. To be clear, I’m not surprised about the close out process, I’m surprised that it was triggered this far out.
The time in the attached photos are in HST (6 hours behind EST)
Thank you
https://www.reddit.com/gallery/1f2xgkm
Posted by WetFlare
2 Comments
Spy spreads from the get??
Ballsy
That’s too many contracts and risk for them if you were to be assigned. Normal practice from what I’ve seen for them