Can I exercise or lapse an option in Client Portal?

Client Portal supports the ability to exercise/lapse long options positions. To take action on long options in your portfolio, from the Trade menu select Exercise/Lapse Options. Alternatively, select the position from your portfolio and find the Exercise/Lapse button in the Order Ticket.

The list of long positions is presented, each with an associated in-the-money (ITM) or out-of-the-money (OTM) tag and “Optimal Action” field with “Hold” or “Exercise” entry. Dividend-paying positions that may be affected by early exercise show a yellow “lightening” icon next to them. These positions are also tagged in your portfolio. Mouse over the icon to find out whether exercising this option early to collect the dividend is projected to be beneficial.

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 an option

1. Select the option position using the Exercise/Lapse Options tool from the Trade menu, or from your Portfolio.
2. Select the options position on which you want to take action.
3. Select the number of contracts you’d like to exercise. The remainder will be held.
4. If the option is OTM, toggle on Allow Exercise.
5. If desired, toggle on Make Final.
6. Submit the order.

Note

Option Exercise Requests must be submitted as follows: