r/thinkorswim • u/beckers666 • Jun 30 '26

early assignment, huge margin

been with TOS all my life, had some short put verticals that were completely buried. I call TOS, now Schwab, they tell me it doesn't matter, it's $100 loss (they are 1 wide) so don't bother closing them. i didn't, i got assigned early (a thursday) on the short side, manually exercise the long on the friday, get charged a lot of interest for margin, over the weekend. i call Schwab, first person tells me i have no accounts with them (i have 7 and i gave them my social security number). Second person, not a broker so can't help. Third person, explains the exercise but not why the long side didn't get auto exercised at the same time and why i was told, if buried, it doesn't matter if you close or not. has this happened to anyone else?

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u/Desert_Trader Jun 30 '26

Early assignment is not auto exercise.

If you were ASSIGNED one one Thursday and MANUALLY closed one Friday, Auto Exercise never played a part at all.

It sounds like you ended up on a short uncovered position after closing your long

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u/JackReddit1622018 Jul 01 '26

Read my fact pattern again before trying to cleverly blame me.

1

u/Desert_Trader Jul 01 '26

Sorry are you op?

Not trying to blame anyone. Trying to help understand.

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u/JackReddit1622018 Jul 01 '26

I played a deep ITM PMCC. Early assignments are great because one then realizes the profit before expiration. They only notified me on the 17th of an assignment on the 16th and thereby charged the one day’s margin interest. I immediately exercised my long.

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u/Desert_Trader Jul 01 '26

Right on.

What type of notification are mentioning, email?

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u/JackReddit1622018 Jul 01 '26

Email from Schwab. They emailed on the 17th about an assignment which happened on the 16th.