You can elect to manually exercise or lapse long options positions only.
To exercise an out-of-the money option you must first select Allow Exercise, which indicates that you understand that exercising an out-of-the money option will result in a monetary loss. You will only see this preference if you select an OTM options position.
If you elect to exercise, the request can be cancelled up until the time of exercise which generally occurs by the morning of the next business day but may occur sooner. If desired, you can specify that an option exercise request be immediately final (non-editable and cannot be canceled) by checking Make Final. Selecting this preference allows for immediate delivery of the underlying stock into your account and immediate closing of the option position. Note that some contracts will not follow this rule and will remain revocable up until the clearing house deadline.
To exercise or lapse an option:
- In your Portfolio, tap the option position.
- Tap the Exercise button and then tap Exercise.
- Follow the prompts to complete the action.
- Once complete, tap the Submit button.
- If there is a warning message, please read it, and if you wish to proceed tap "Override and Transmit". A summary page will populate.
Additional Information
Options involve risk and are not suitable for all investors. For more information read the “Characteristics and Risks of Standardized Options_” that you can find on the OCC website._