Last Friday, May 21, was - as many of you options traders know - option expiration Friday.
Most of the tasks that Collective2 software must handle - things like buying or selling securities, marking to market, measuring performance - are performed thousands of times each month, thanks to the growing number of Collective2 users. So the software is getting pretty good at doing those sorts of things. Through real life trial and error, we have managed to hunt down and solve many bugs. Each week we see fewer and fewer unexpected problems.
In contrast, option expiration happens relatively infrequently. So our sample set of real-life experience is relatively limited. Thus this is an area where Collective2 software needs more work.
I tell you this to ask you all for a favor. If your trading system had options which expired on Friday, please check your account and make sure the system handled your expiration correctly. In particular, it should have automatically assigned/exercised in-the-money options. If you didn’t have enough account equity to handle exercise/assignment, the system should have automatically liquidated your option position.
Similarly, if you fail to roll your expiring futures position at the end of the contract period, the software should automatically liquidate your position. If you notice any problems in this area, please let me know by emailing info@collective2.com
Matthew
