Exercise procedures
Automatic exercise and Exercise-by-Exception
Expiring in-the-money options may be processed under exercise-by-exception procedures unless contrary instructions are submitted through the proper channel.
Plain-English version
The process can make exercise feel automatic, but official sources emphasize that procedures, thresholds, and customer instructions matter. Your broker may have its own earlier cutoff and requirements.
Why this matters
A small in-the-money option can still create a large share or cash obligation. A near-the-money option can also become sensitive to late movement and instructions.
Do not rely on this site for operational instructions. Use current OCC/OIC materials and your broker’s published process.
Primary reading: OIC options basics and Expiration Friday · OIC exercising options · OIC options exercise FAQ · FINRA options overview and expiration risk · OCC Options Disclosure Document