What will happen on the options expiration date?
As the expiration date of your option contract nears, there are a few important things to keep in mind:
If your option is In-The-Money (ITM) by $.01 or more at market close
It will be automatically exercised by the OCC after the market close on the expiration date if there are sufficient funds/equities.
If there is insufficient buying power/equities in your account to support an exercise, you may sell the ITM options to collect the premium. If you do not act prior to 1:00PM EST on the contract expiration date, Redbridge Securities reserves the right to take any action it deems necessary to mitigate risk without notice including, but not limited to, closing the contracts in the open market on your behalf, or submitting Do Not Exercise Requests, preventing exercise of the contract(s) your account cannot support. Action taken by RBS is on a best-efforts basis and is not guaranteed. Market or limit orders may be placed by RBS which could result in orders being filled at less than favorable pricing, or orders not executing at all.
If your option contract is out-of-the-money at the market close
Your option contract(s) will automatically expire worthless and no action is required.
You are responsible for monitoring your account and are responsible for losses incurred from options activity (including actions taken by RBS). Options trading entails significant risk and is not appropriate for all investors.