Option expiration, exercise & assignment

Option Expiration

Option expiration refers to the expiration date of an option contract, which is the last date on which the holder of a long option may exercise the contract.

Option Exercise

Calls and puts give the owner the right to buy or sell a stock at a certain price by a certain date. When the holder of a call or put option has an option that is "in-the-money" (i.e., the strike of a call is below the current stock price, or the strike of a put is above the current stock price) and decides to buy or sell the stock, that is known as "exercising" an option.

If you are long a call option and would like to exercise, please make sure you have enough available cash in your eToro Options account and then contact our support team by phone or email for assistance.  Puts may also be exercised assuming you have the shares to sell in your account.  Note we can only take exercise instructions on the day of expiration and unlike most firms, eToro Options does not charge a fee to exercise an option.

Option Assignment

Option assignment occurs when the buyer of an option decides to exercise, putting the seller of the options contract in obligation to deliver on the contract. For example, if you have sold a call option and the purchaser of the contract exercises, you would be obligated to deliver the underlying shares to the buyer. 

eToro Option's policy is to close out in or near-the-money positions beginning at 3:30 pm ET on the expiration date. Although eToro Options will use its best efforts to sell such options, eToro Options cannot guarantee that the option will be sold, and therefore cannot guarantee such option will not be exercised or assigned.