A DNE is a request that an in-the-money option is not auto-exercised. If your account does not have buying power or shares available to support an option exercise you can either close the option by selling or you may consider a DNE. However, if there is value in the option it may be beneficial to simply close the option to recognize the value since placing a DNE would not. In order to place a DNE on a specific option position, please send an email to [email protected]. It’s important you send the DNE request by 3:00 PM ET on the day of expiration.

For further details on option trading at Alpaca, please navigate to our documentation.

For further educational information on Options trading, please refer to: https://www.optionseducation.org/

Options trading is not suitable for all investors due to its inherent high risk, which can potentially result in significant losses. Please read Characteristics and Risks of Standardized Options before investing in options.

All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. There is no guarantee that any investment strategy will achieve its objectives. Please note that diversification does not assure a profit, or protect against loss. There is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing.