Auto-Exercise Threshold
Minimum ITM amount for automatic exercise
What is Auto-Exercise Threshold?
Auto-Exercise Threshold The minimum in-the-money amount required for the OCC to automatically exercise an option at expiration. The standard threshold is $0.01 for customer accounts and $0.01 for market maker accounts. Options holders can override auto-exercise by submitting a do-not-exercise instruction to their broker before the expiration cutoff.
Complete Definition
The minimum in-the-money amount required for the OCC to automatically exercise an option at expiration. The standard threshold is $0.01 for customer accounts and $0.01 for market maker accounts. Options holders can override auto-exercise by submitting a do-not-exercise instruction to their broker before the expiration cutoff.
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