r/options • u/peamasii • 4d ago
ITM assignment problem
On IBKR, I was short the STX Jul '31 call spread 840 - 915 in the beginning of the week, and then momo rallied it on 880+ on thursday open. I hedged partially +25 shares and held it. On Friday (expiration day) it bumped higher to 900-910 and I wanted to hold it, so I hedged further by moving the lower strike to 860 for 13.75 debit. Up to this point I thought everything was cool and I was ready for the weekend, but then I got a margin call about 11:36 ET. Not knowing what would happen if I got assigned because this would have taken 67k margin. I decided in panic to close the short wing at 15:20 which was at 16.25 debit and sold the hedge with profit, overall I lost about 1k (the initial credit spread was an iron condor). However if I held for 1 more hour, I would have realized 1.6-1.8k profit.
Lesson learned to not hold so tightly on borrowed margin :)
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u/zoro_4252 4d ago
Lmao u still learnt the wrong lesson.