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Can’t Afford To Exercise Stock Options?

What happens if you don’t have enough money to exercise your options? If you don’t have enough buying power or shares to exercise your option, we may attempt to sell the contract in the market for you approximately 1 hour before the market closes on the options’s expiration date.

Can you exercise an option not in-the-money? There is generally no exercise or assignment activity on options that expire out-of-the-money. Owners usually let them expire with no value. Although this is not always the case as post-market underlying moves may lead to out-of-the-money options being exercised and in-the-money options not being exercised.

Do I have to pay to exercise stock options? Shares of private companies aren’t traded on the stock exchange so you’ll need to pay out of pocket to exercise and fund the purchase (instead of being able to sell shares and cover your cost).

Related Questions

Can’t Afford To Exercise Stock Options

If you don’t have enough buying power or shares to exercise your option, we may attempt to sell the contract in the market for you approximately 1 hour before the market closes on the options’s expiration date.