IB FYIs help you stay on top of relevant dates and events through notifications and actions. A new optional action, Automatically exercise my options early, has been added to the IB FYI Dividends notification. When this action is enabled, IB's system will determine whether it is likely to be beneficial to you to exercise call options early, using predefined mathematical criteria and based on well-established theories of option pricing and efficient markets. The system will then send you a notification two days before the stock trades ex-dividend and, if the determination remains favorable, automatically exercise the option early with no action required from you. This feature is supported for US stock and ETF options.
You can enable and disable IB FYIs and trading-related automatic actions from the Manage Account > Trade Configuration > IB FYI page in Account Management. |