Have you let a boxed trade go in to expiration at TDA?

Craig

New member
I am just wondering what happens if I box a trade to neutralize it, and then let it go in to expiration with it ITM.
I asked the trade desk on ToS, but didn't get an exact answer other than to say that all ITM options are auto exercised.

Example for discussion:

Initial trade: ABC call butterfly: +1 C 49/-2 C 50/+1 C 51 for 0.10 debit
Box it by selling a put butterfly: -1 P 49/+2 P 50/-1 P 51 for 0.50 credit

ToS' risk analyzer will show this as flat t+0 line and 0.40 profit.
What will happen if it is taken to expiry and ABC's closing price is: $49.50, $50.50, $51.50?

Thanks!
 
Last edited:

tom

Administrator
Staff member
Everything should cancel out. You shouldn't have to do anything. Just let it expire. There may be exercise fees for ITM options though...you might need to check that.
 

Craig

New member
Everything should cancel out. You shouldn't have to do anything. Just let it expire. There may be exercise fees for ITM options though...you might need to check that.
Thanks Tom, that is what I am hoping. But I just didn't get a warm and fuzzy answer from TOS' trade desk (unlike yours). That is why I was hoping to hear from someone who has actually let a boxed trade go to expiration with TDA. Just to see if they do something a little unexpected with fees or perhaps in ordering of exercise.

Thanks again,
-C
 
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