What happens if my option expires in the money?
If you hold the option to expiration and it finishes in the money, it is automatically exercised by your broker — a process called exercise-by-exception. You do not have to do anything, but the result is real shares changing hands.
For a long call that expires in the money, you buy 100 shares per contract at the strike; for a long put, you sell 100 shares at the strike. If you do not have the cash or the shares, your broker may close the position for you late in the day, or you can sell the option before expiration to avoid assignment entirely.
If you sold the option, the mirror happens: an in-the-money short call means your shares are called away at the strike, and an in-the-money short put means you buy the shares. The simplest way to avoid surprises is to close or roll any in-the-money option before the closing bell on expiration day.
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