Basics

Automatic Exercise

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

ITM options auto-exercise at expiration

What is Automatic Exercise?

Automatic Exercise Options that are in-the-money by $0.01 or more at expiration are automatically exercised by the OCC (Options Clearing Corporation) unless the holder instructs otherwise.

Complete Definition

Options that are in-the-money by $0.01 or more at expiration are automatically exercised by the OCC (Options Clearing Corporation) unless the holder instructs otherwise.

Related Terms

Exercise Options Clearing Corporation Expiration Date

Written by

ApexVol Research Team

Quantitative options research

All calculations use live institutional-grade data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and institutional data change. Last revised 2026-05-12. How we research →

Want to Learn More?

Explore our educational resources and analytics tools to deepen your understanding.

Learning Center

Auto-Exercise Threshold All Terms Average True Range (ATR)

Learn Options Trading

Understanding Options Greeks Implied Volatility Guide How to Trade Options 0DTE Options Trading Options Glossary Strategy Guides Learning Center

Explore More Tools

Options Profit Calculator Payoff, breakeven & Greeks Greeks Calculator Delta, gamma, theta, vega IV Rank Calculator Implied volatility & IV rank Options Chain Real-time Greeks Greeks Heatmap Visual analysis Volatility Lab IV analysis Strategy Simulator Test strategies IV Intelligence 3D visualization Options Screener Find opportunities Historical Data Past snapshots Earnings Historical moves & IV 0DTE Analytics Same-day expiration