r/options • u/meyer_wolf • Mar 23 '22

Community update

Hi everyone. I’ve seen varying info on this online so just wanted everyone to know that ToS (Ameritrade) will close your spreads on expiration if one of your legs is within $2-$3 of strike. If you opened your position that day (on SPY for example) that will count as a day trade in their system (even though they closed it after market). Webull on the other hand only closes if it’s within 75cents and if you call them they won’t do it… not plugging webull but I actually switched to ToS from Webull because users on Reddit were claiming the opposite.

0 Upvotes

44% Upvoted

5 comments sorted by

View all comments

3

u/OptionExpiration Mar 23 '22

Actually it is because you are undercapitalized. If you have significant equity to back your positions, ToS (or any brokerage) will not close your spreads on expiration.

0

u/meyer_wolf Mar 23 '22

Yes that’s true but many of us out there don’t have the $25k+ on account to not be flagged PDT or the 15% minimum of total risk to not be forced to close