Option Auto-Exercise Rules. Accessed Aug. 25, 2021. Access to Electronic Services may be limited or unavailable during periods of peak demand, market volatility, systems upgrade, maintenance, or for other reasons. Futures and futures options To avoid anymargin callsor unwanted overnight or weekend exposure, make sure you plan ahead for any positions you might acquire on expiration. Options contracts give their holders the right, but not the obligation, to buy (for a call option) or sell (for a put option) a set amount of the underlying security at a pre-determined strike price, on or before the contract's expiration date (for an American style option. Today's trading session has been choppy as investors prepare for this week's Federal Open Market Committee meeting. This so-called "triple witching" may lead to greater trading activity and increased volatility. However, if the price of the underlying changes after the close, you might have a short option go from OTM to ITM. You can prevent Webull from auto-exercising your options by selecting the do-not-exercise ("DNE") button. Exercising an option without paying for the underlying. What Is Automatic Exercise? Please read Characteristics and Risks of Standardized Options before investing in options. Ltd. (Webull). Note that a stock's price can tick up or down after the close on expiration Friday, resulting in calls or puts (but not both calls and puts, obviously) that were near the money at Friday's close becoming in the money - and being . "2021 Options Expiration Calendar." Spreads that expire in-the-money (ITM) will automatically exercise. There are very different outcomes depending on the time when the exercising decision is made: at 16:00 - that means the option is automatically exercised, and someone out there sells me a truck full of LUV for 39.00. DNE stands for Do-Not-Exercise. And don't underestimate a few minutes of body weight exercises in your home, like sit-ups, push-ups or planks, which are nice when you're really . 7 Excuses for Not Exercising. Expiring options will be automatically exercised if they're ITM by $0.01 or more as of the 3 p.m. CT price (for equity options) and 3:15 p.m. CT (for options on indexes). Services may not be available The content on Webulls website/application may contain advertisements, and the advertisement has not been reviewed by the Monetary Authority of Singapore. Parameters and Trading, With Examples, LEAPS: How Long-Term Equity Anticipation Securities Options Work, Understanding the Difference: European vs. American Style Options, Investor Bulletin: An Introduction to Options. Learn more about Stack Overflow the company, and our products. 2019. Does Webull exercise options automatically? If this occurs, then you may request a Do Not Exercise (DNE) request by reaching out to our Trade Desk before the cutoff time. We all do. Services are only intended for persons in jurisdictions or countries where it is legal for such persons to receive them. Options expiration. You might want to keep this checklist handy just in case. The OCC handles the exercises and assignments over the weekend and you can wake up Monday morning with a long or short position in the underlying with unexpected and significantly large directional risk.