Assigned Early on a Spread (Closing with a Covered Stock Order)
If you have been assigned early on a defined-risk spread no need to worry, you can set up a covered stock order to close out of the long option and assign...
Expiration, Exercise, & Assignment
Expiration Risk (Closed Out of Position)
Why did the risk team close my position? In short, it is to eliminate expiration risk Expiration risk refers to the potential of creating a large, unhedge...
Risk Team Procedures and Monitoring
Did someone close out my position? Our Risk team may intervene if you do not inform them that you are monitoring The tastyworks Risk team monitors potenti...
What Happens to Equity/ETF Options at Expiration?
Life is like a portfolio of options - when we approach expiration, we aren’t always sure what we’re going to get. Don’t worry, here’s a refresher to see wha...
What Happens to Equity/ETF Spreads at Expiration?
Do you have a spread (or vertical) facing expiration and don't know what will happen to it? There are three different possible scenarios explained with...
Offsetting Assignment by Exercising a Long Option
The scenario explored below is one in which the short leg of your defined-risk spread gets assigned and you’re stuck with the resulting position along with ...
Settlement and Expiration of Cash-Settled Index Options
How are cash-settled options handled at expiration? First, do you have an AM or PM expiration option? Remember the adage “what you see is you what you get...
Cash-Settled Indexes Options Specifications
Monthly/Weekly Summary All of the options listed on the indexes below are cash-settled. The symbols listed below, except for OEX, are European-style option...
Options Exercise Requests
Before requesting an exercise request Were you assigned early on a spread? Were you assigned early on a spread and want to exercise your long leg? A cover...
Automatic Options Exercise
When a long option automatically exercises In the Money (ITM) Options Automatically Exercise The Options Clearing Corporation (OCC) will automatically exe...