Hello. Hope you are well.
I have been selling covered calls on the shares I own. If the position is far OTM, I typically do not buy back the option I’ve sold, just before the expiry. However, SBI Securities (broker) auto squares off the open positions, on day T-1 and buys back the options I’ve sold.
I wanted to ask if square off policies are broker-specific. This is because, in the US market, OTM options on expiry just expire worthless (the broker doesn’t buy them back).
Thank you for your time.