The answer depends upon whether the assignment occurred at expiration or prior to expiration (i.e., an American Style option). If the assignment takes place prior to expiration, neither IBKR nor the clearinghouse will act to exercise a long option held in the account as neither party can presume the intentions of the long option holder. At expiration, many clearinghouses employ an exercise by exception process intended to ease the operational overhead associated with the provision of exercise instructions by clearing members. In the case of US securities options, for example, the OCC will automatically exercise any equity or index option which is in-the-money by at least $0.01 unless contrary exercise instructions are provided by the client to the clearing member. Accordingly, if the long option has the same expiration date as the short and at expiration is in-the-money by a minimum of the stated exercise by exception threshold, the long option will be automatically exercised effectively offsetting the stock obligation on the assignment. Depending upon the option strike prices, this may result in a net cash debit or credit to the account.
Does IBKR exercise my long option if I am assigned early?
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What happens to the USD equity options that I am long at expiration?
Will the long leg of an option spread be automatically exercised before expiration if the short is assigned?
Will the long leg of an option spread be automatically exercised at expiration if the short is assigned?
Can I exercise the long leg of my option spread at expiration only if the short leg is assigned?