Options Trading Tutorial

when buying stock options,if my option is in the money on expiration day.,do i need to take action to close it?

or will my broker automatically close the position and fund my account with the total profit and balance?,

Public Comments

1. It depends on your broker. Some will let it expire without further action on your part. Others will execute the option, if there is a profit in doing so, and credit your account with the profit. Call your broker or read your contract with your broker. The contract normally will indicate what the broker will do.
2. Do not be foolish, rather take acton to close your option and do not trust that the brokers programs are fool proof. One call, just a few minutes and ensure you execute the trade.
3. You shouldn't, if your option is .05 in the money the OCC should exercise it automatically at expiration.