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

Hey everyone, Kirk here again and welcome back to the daily call. Today, we’re going to answer the question, “Will my broker automatically exercise options that are ITM or in the money?” The short answer to this is yes, they will if you let that contract go through the expiration date or process. If you’re trading a contract that's 30 days out from expiration and you’re long that contract, then your broker is not going to go ahead and automatically exercise your contract until you get through the expiration date. If you were to leave that long option contract on and in place and that option was in the money at expiration, meaning for call options that the stock is higher than your strike price, for put options, a stock is lower than your strike price, if your option contract is in the money at expiration, yes, your broker will assume that you want to get delivery of those long or short shares and they will automatically exercise your contracts. The good news here is in most cases, you have the choice of wheth