Before requesting an exercise request
Were you assigned early on a spread?
Were you assigned early on a spread and want 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, 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 could 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?
Reach out to our Trade Desk before 3:30 PM Central
To exercise an option early, call our Trade Desk at 312-724-7075 or chat in by our 3:30pm CT cutoff time, or 30-minutes after market close. Exercise requests made before our cutoff via email to our Trade Desk (email@example.com) are processed on a best-efforts basis. Any requests made after 3:30pm CT will processed on a best-efforts basis until 4:30pm CT. Failure to submit an exercise request before our cutoff time may result in the contract(s) not being exercised.
Please provide the symbol, call/put, expiration date, strike price, and the quantity you want to be exercised when reaching out. Additionally, your account must have the buying power to handle the exercise request.
Please keep in mind that you may only request an early exercise of American-style options. European-style options, namely cash-settled index options like SPX, can only be exercised based on the settlement price at expiration.