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 by $.01 at market close

  • It will be automatically exercised by the OCC after market closed on the expiration date if there are sufficient funds/equities.

  • If there are insufficient funds/equities to cover an automatic exercise, we highly recommend to sell positions and keep the gain before market close. The risk of holding the position is too large, and Redbridge will typically attempt to liquidate on behalf of the customer if you have no action until 1 hour before it expires, the liquidation will be a market order, that could not guarantee sucess or filled price outstanding.

  • If you your option position has not been sold before expiration, and you do not have sufficient funds/equities to cover the value of the exercise,a Do Not Exercise request will be reported to OCC, and your option contract(s) will expire worthless. Liquidating your option contract(s) before expiration is the only way to avoid this.

If your option out of money at market close

Your option contract(s) will expired worthless automatically.