1. If your account hasn't activated HK Stock Short Selling function, it cannot hold short stock positions from option exercises or assignments. In that case, if exercising options that are in the money results in short stock positions in those accounts, you must either close the options, allow them to lapse, or purchase enough underlying assets for settlement before exercising the options. Otherwise, we may liquidate these options at any time depending on market conditions.
2. The in-the-money (over 1.5%) long options position will exercise automatically at the end of the expiry date.
3. For risk management purpose, Moomoo MY will recalculate your required margin in accordance with the margin requirement after the exercise of your in-the-money (or close to in-the-money) options. This action shall be performed on the day of expiry prior to the market close with no fixed schedule. Please note that Moomoo MY has the right to close such options position without further notice if a margin call is triggered during above period.
4. According to the terms above, if your options position is exercised or assigned, you should take full responsibility of any corresponding settlement obligations as well as any potential loss.
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