The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “What happens if your option contract expires in the money?” If your option expires in the money and you get through the expiration process, you will be going through now, the assignment or the exercise process for option contracts and this also depends on which side of the trade you’re on and which type of option contract that you have. But generally, there's only two things that are going to happen. If you are long option contracts, meaning you owned a long put option or a long call option, then you will go through the exercise process automatically with your broker. Your broker will assume that by you leaving the contract on through expiration and leaving it on to expire in the money, that you wanted to either take delivery of long or short stock depending on what side of the contract you’re on. The other side is if you are short an option contract. Whether you’re short a c