What are some reasons TradeZero may close out an option position?

TradeZero may close out option positions at its discretion if they present risk or operational concerns.

Common reasons include:

• Insufficient equity to support potential exercise or assignment
• Insufficient equity to maintain positions (equity less than $99)
• Position not fully held in cash (equity ratio less than 100%)
• Expiration-related risk, especially with in-the-money options
• Corporate actions affecting the underlying security

Important:

• Positions may be closed prior to expiration, allowed to expire, or result in delivery of the underlying, depending on risk
• TradeZero may liquidate the underlying position after exercise or assignment if needed
• Accounts may be restricted from opening new positions to limit further exposure
• If an option could result in a short position in a cash account, it may be closed on expiration day