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Hi...may i know is that all ITM call options will be exercis...

Hi...may i know is that all ITM call options will be exercise automatically when it expired?
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  • Diamond-sh : You can ask Customer service for help

  • Diamond-sh : https://www.moomoo.com/hans/community/feed/106193669259270?lang_code=2

  • QRSTOP : u tried paper trade on BABA...buy a call at 85 exp on the yesterday.
    i wonder if i trade it real what will actually happened?

  • QRSTOP : #i

  • QRSTOP : @doctorpot1can elaborate Sly?

  • doctorpot1 QRSTOP: moo moo will exercise it unless you email them say you don't want, but if you don't want to exercise just sell it so can get money.

    but moo moo will follow their margin rule also. Moo moo will try their best to exercise all ITM option for you but if the account don't have enough money to buy then they may have to sell your option to close it for you. e.g. our account got 1k cash but got 100 SPY $350CALL option, that is $3.5m to pay and buy the shares. very risky for moo to lend us 3.5m when we only got 1k. so they may just close the options. or get shares liao then immediately sell.

    plus some stock cannot short also, so if we have ITM PUT option but no shares, then cannot short, so moo may close it or buy shares from market for you to settle it. all base on their discretion.

    for options trading, we should manage everything ourselves de, so if don't want exercise, close it ourselves. want it to get exercised make sure got enough cash or stock to settle. moo moo will just try their best to exercise every ITM options so long we have enough assets or margin to settle it.

    more info can be found here:
    https://www.moomoo.com/sg/support/topic5_260/h5

  • doctorpot1 QRSTOP: in real trade I don't think we can ever buy an option that is expired... even if we can don't do it cause it is just burning money away.

    expired option cannot be exercised so it is just worthless pieces of contract. American style options can only be exercise on or before expiry.

  • QRSTOP : @doctorpot1 i bought it on 30 Dec....
    From what i see i scored a big win....i just wanted to know if in real trade i would need to have enuf money in my account in order to excercise my call options which in ITM for about 22.65...
    meaning need to buy baba from the sell @85 and immediately sell back to market to gain profit

  • QRSTOP : i cam also choose to sell the contact which is far ITM when i 1st bought it....am i correct master?

  • QRSTOP doctorpot1: great explanation....i think i am improving day by day...thanks for the clarification master...kamsia

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