CTRA
Coterra Energy Inc.
stock NYSE

Was anyone else affected with how securities from the Coterra / Devon merger were handled at Schwab today? I had 1100 shares of Coterra, and had sold 11 call option contracts against them in my Schwab IRA account. Today, OCC contacted Schwab about how the options were to be handled: they were to be converted to DVN options at a rate of 70/100, which was the agreed merger share ratio. As a result, i am now short11 DVN call option contracts in my IRA account.This would be fine if the CTRA shares had been properly converted to DVN shares by Schwab. But Schwab claims they were not notified by DVN's trasnsfer agent (CompuShare) of the change in shares. Compushare, in turn claims that they were not notified by Devon of the change in shares. Neither Schwab nor Compushare were willing to act to resolve this, or even to investigate it. As a result, I currently have a naked call position in my IRA account, and theoretically, Schwab could liquidate items in that account at any time to resolve the issue. Also, because these short option contracts create a negative buying power balance in the IRA account, I cannot make any "buy" trades. This kind of stinks.

Was anyone else affected with how securities from the Coterra / Devon merger were handled at Schwab today? I had 1100 shares of Coterra, and had sold 11 call option contracts against them in my Schwab IRA account. Today, OCC contacted Schwab about how the options were to be handled: they were to be converted to DVN options at a rate of 70/100, which was the agreed merger share ratio. As a result, i am now short11 DVN call option contracts in my IRA account.This would be fine if the CTRA shares had been properly converted to DVN shares by Schwab. But Schwab claims they were not notified by DVN's trasnsfer agent (CompuShare) of the change in shares. Compushare, in turn claims that they were not notified by Devon of the change in shares. Neither Schwab nor Compushare were willing to act to resolve this, or even to investigate it. As a result, I currently have a naked call position in my IRA account, and theoretically, Schwab could liquidate items in that account at any time to resolve the issue. Also, because these short option contracts create a negative buying power balance in the IRA account, I cannot make any "buy" trades. This kind of stinks.