What happens when I am in the money on an option at expiration?

At expiration, any equity option that is .01 of a point or more in the money will be automatically assigned.

There is a $0.01 per share fee to exercise options contracts on regular exercise day. Accounts holding in-the-money options that do not have enough equity, or do not hold an off-setting position in the underlying, will be responsible to cover the resulting long or short position on Monday morning.

If the option is in the money, but you do not want to be subjected to automatic exercise, please contact us by 4:30 pm ET on the Friday of expiration. If an account does not have enough equity to cover an automatic exercise, MB Trading may at its discretion let the option expire with no exercise even if, theoretically, it should have been subjected to automatic exercise. This can include closing out your option position(s), entering a do not exercise or closing stock position(s) in the afterhours market to cover any resulting position(s). If MB Trading has to take action above the normal course of action, a $100 options administration charge will incur in the account.



Was this article helpful?
0 out of 0 found this helpful