Before requesting an exercise request
Were you assigned early on a spread?
Were you assigned on a spread and looking to exercise your long leg? A covered stock order could be more favorable than an exercise request. To learn more, please click here.
Does the option expire today?
If you were assigned early on a spread and your long leg expires today then the long option will auto-exercise as long as it expires $0.01 or more ITM. To learn when options exercise automatically, please click here. Additionally, you may perform a covered stock order to get rid of the assignment.
Can your account handle the exercise?
Your account must have enough buying power to handle an early exercise request. For example, if you have a $500 cash or margin account and you are long a $50-strike call, then you would not be able to submit an early exercise request. Although you were able to purchase a call, an early exercise request would convert the long $50-strike call into $5,000 worth of stock. Your only option would be to sell the call. However, if your account has sufficient buying power, then you may submit an exercise request.
How do I submit an exercise request?
Email our Trade Desk before 3:30 PM Central
To exercise an option early, you must submit an exercise request to our Trade Desk (firstname.lastname@example.org) by 3:30 PM CT (Chicago time). Failure to do so will result in the contracts not being exercised. Additionally, your account must have the buying power to handle the exercise request. Please keep in mind that exercise requests can only be done with American-style options. European-style options (namely, cash-settled index options) can only be exercised at expiration (based on settlement).