Option expiration is the final day an option holder can choose to exercise their long option contracts. After 4:00:01 PM ET on the expiration date, exercising the option is no longer possible. Options that expire in-the-money by at least $0.01 will be automatically exercised. For example, if you hold a call option with a $100 strike price and the underlying stock closes at $100.01 on expiration, your option will be considered in-the-money, and you will receive 100 shares of the underlying stock. Automatic exercise occurs by 6:00 PM ET on expiration day.

Your account must have sufficient funds or buying power before the exercise is processed. If there are insufficient funds, you should close the option before the market closes on expiration day. If your account lacks the necessary buying power to cover the purchase, Alpaca may take action to close the position.

We will accept Do Not Exercise (DNE) requests, however, any requests after 4:00 PM ET will be handled on a best-efforts basis, as they must be submitted via email and processed manually.

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.