What happens if my options expire in the money?

If your options contract expires in the money, it will generally be exercised or assigned automatically. For standard contracts, this means -

• Long call: You will buy 100 shares at the strike price.
• Long put: You will sell 100 shares at the strike price.
• Covered call: Your 100 shares will be sold at the strike price.
• Cash-secured put: You will buy 100 shares at the strike price.

If your account does not have the buying power or shares to support exercise, we will try to sell your contract in the market starting at approximately 2 PM ET on the expiration date.

If you do not want an in-the-money long contract to be exercised, you can contact us to submit a Do-Not-Exercise request by 4 PM ET on expiration day. Use the following link for instruction on submitting a Do-Not Exercise request.

Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Options Disclosure Document. Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.