The OCC has set the following rules for stock and narrow based index options expiration and exercise:

  • Options cease trading at 4:00 PM EST (3:00 PM CST) on the third Friday Prior to expiration.
  • Option holders who wish to exercise their options must do so by 5:30 PM EST (4:30 PM CST), the third Friday prior to expiration.
  • All options expire at 11:59 PM EST (10:59 PM CST) on the Saturday following the third Friday.
  • All options held by public customers will automatically be exercised if they are 1 cent in the money
  • All options held by broker dealers will automatically be exercised if they are 1 cent in the money

The OCC has set the following rules for broad based option expiration and exercise:

  • Options cease trading at 4:15 PM EST (3:15 PM CST) on the third Friday prior to expiration.
  • Option holders who wish to exercise their options must do so by 5:30 PM EST (4:30 PM CST) the third Friday prior to expiration.
  • All options expire at 11:59 PM EST (10:59 PM CST) on the Saturday following the third Friday.

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American Vs. European Exercise

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