Exercising Euribor future options

[a_gnome]

I'm currently holding a small test Dec 09 LIFFE Euribor butterfly position which is about to expire. Do I need to do anything like manually exercise the options or will the whole position automatically convert to the correct cash value at the final settlement price? I'm trading with Interactive Brokers if that makes any difference.

 

[Martinghoul]

If they are 'normal' front options (rather than mid-curves), you don't have to do anything, unless you specifically want to exercise sub-optimally.

BTW, I can't stop marveling at your signature. There's so many things wrong with that statement, my mind boggles...

 

[a_gnome]

If they are 'normal' front options (rather than mid-curves), you don't have to do anything, unless you specifically want to exercise sub-optimally.

BTW, I can't stop marveling at your signature. There's so many things wrong with that statement, my mind boggles...

Thanks Martin, they're normal Dec 09 LIFFE Euribor STIRS. I'll just leave them then.

BTW what's your issue with the trend statement, isn't that the definition of a trend? I know that option traders tend not to believe in trends but that doesn't mean they don't exist.

 

[arabianights]

not to answer for martin, but to start with when is it going to continue? what is a trend

 

[a_gnome]

not to answer for martin, but to start with when is it going to continue? what is a trend

Good questions indeed! All I'll say is that it is possible to find solutions to these problems.

 

[Martinghoul]

Exactly my question, Cap'n Arab... The statement, IMO, translates to: "A trend is a trend".