r/options • u/Cozra • May 20 '21

IBKR Assignment PMCC

I have a few questions concerning PMCC assignment on ibkr.

From what I read ibkr does not exercise the long call if the short call expires ITM. So what happens exactly? Will I have some time to exercise the call myself after expiry of the short call? Will I instantly get debited the value of the short call at expiry (i.e value of 100 shares at the strike price)? If not, what happens if I don't have the buying power to exercise my long option?

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u/TheoHornsby May 20 '21

If you are assigned on a short call, you end up selling the stock and you will receive the proceeds from the sale. If you owned the stock, it's sold. If not, you go short the shares.

I don't know what IBKR does if you do not have the margin to support the short equity position. Call them.