Can I exercise my option contract before the expiration date? Equity options, which are options on individual stocks and ETFs, are "American style" options. That means that they can be exercised at any time on or before the expiration date. Index options, which use an index value as the underlying, are European style. That means they can only be exercised on the date of expiration. Most options on Webull are equity options, but it's important to be aware of this distinction when trading. How do I exercise my option contract? In-the-Money (ITM) options will be automatically exercised if $0.01 or more ITM on expiration day if you have sufficient funds or shares. In-the-Money, At-the-Money, or Near-the-Money options may be automatically liquidated before the trading day ends if your account lacks sufficient equity to support an exercise. Out-of-the-Money options will expire worthless and be removed from your account. To exercise your options early, please use the following steps on the Webull mobile app: |
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You can also exercise your options by contacting us through the in-app Help Center with instructions that include the following details:
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What will happen to my account if I exercise my option contract? On the day you submit an option exercise request, you must maintain adequate buying power or the necessary underlying shares to support the early exercise of a call or put option. This requirement must be met throughout the trading day until 8 PM. For example, if you are exercising one $1 call option, you need to keep $100 in buying power in your account until 8 PM on the exercise request day. The exercise request will be processed overnight, and your positions and balances will be updated on the following business day. What is the DNE button for? When placing option orders or selecting a position, you may see a “DNE” button, which stands for Do-Not-Exercise. If this button is enabled, the contract will not be automatically exercised upon expiration, regardless of whether it is In-The-Money, Out-The-Money, or At-The-Money (ITM, OTM, ATM). However, the contract may still be auto-liquidated on expiration day. To toggle the Do-Not-Exercise button, please use the following instructions for both the Webull mobile app and our intuitive desktop application: |
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Position Management Your equity option positions can be assigned at any time up until expiration. If the exercise or assignment of your open options poses a risk to your account or to Webull, we reserve the right to take necessary actions. This may include exercising offsetting positions, liquidating open positions to mitigate risk, or opening equity positions to fulfill assignment obligations. Shortly before the end of trading on the expiration date, any In-the-Money options that lack sufficient equity for exercise will be automatically liquidated. It is important to regularly monitor your options and account equity and to take proactive steps to manage your positions effectively. |
Option trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the entire value of their investment in a short period of time and incur permanent loss by expiration date. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options and Option Spread Risk Disclosure before trading options. |