If let’s say you purchased a put option and it becomes ITM at expiry.
Stock closes at 999.50 and you have strike 1000 PE (long)
There’s no liquidity to square off. So is there any way to avoid the delivery obligations?
By definition , doesn’t option mean that the owner of the contract should have the option and not the obligation to exercise it ?
Can take counter futures position.
Theoretically yes, but exchanges says if ITM for stock options then it is mandatory to get settled.
i don’t think buying futures to net off position would work.
Either broker system will reject order or the last moment close price could make option OTM.
Need to call and inform RMS, if not RMS will try to participate in post closing session to take counter trade via cash market. They can only try but end of the day all liability is with client only.
RMS tried, but their own order was rejected by their own system. Now how should that be interpreted ? Incompetence, helplessness or ill-intention. My heart trusts the broker, so i don’t believe it could be ill-intention , but i could be wrong also. Could just be a mismanagement due to being understaffed on a high volume day and lack of coordination between different departments. But should i escalate the issue to higher management or not ?
End of the day it is user problem, if RMS tried means it is not ill intention, maybe because of high volatile expiry day or something else, you can write to them to find out.