The rule of U.S. stock option exercise
Exercising rules for options at the end of the day (expiration date):
|
Option type |
Whether to support exercise and passive exercise |
Explanation of the exercise rules on expiration day |
|
long call |
Yes |
In-the-money and the exercise margin is sufficient |
|
long put
|
No |
Exercising is not supported |
|
short call
|
Naked Call Option Selling No |
In-the-money and passive exercise is not supported |
|
Covered Call Yes |
Selling call options while holding a long position in the underlying stock creates a covered call. A cover call can reduce the margin requirements for the call option. |
|
|
short put |
Yes |
In-the-money and passive exercise is supported, buy the corresponding amount of stocks at the exercise price |
Please note: Although the option products provided by our company are all American options, our company is currently unable to provide early exercise services.
