An equity options buyer/holder has the right but not the obligation to exercise an option contract at any time before expiration. When you exercise a long call, you choose to delivery of the underlying asset at the strike price. When you exercise a long put, you choose to deliver out the underlying asset at the strike price. Only option buyers/holders have the right to exercise.

Most equity option contracts can be exercised any time up to the option's expiration date.

When an equity contract is exercised online, the stock is immediately deposited or removed from your account. Index options funds are updated the following business day.

You must have sufficient cash or buying power in your account to voluntarily exercise option contracts.

It is our policy to automatically exercise all long equity options positions that are at least $0.25 in-the-money, based on the "composite" or "consolidated" closing or last sale price reported by the Options Clearing Corporation (OCC) price vendors for underlying security prices on the final trading day prior to options expiration. To exercise equity options outside this parameter or to submit a request to decline an exercise of options within this parameter, please notify a TD AMERITRADE representative of your exercise instructions. Your request must be received by us prior to 4:30 p.m. ET on the last trading day for the options contracts. If you do not have sufficient cash, positions, or buying power to cover any possible exercises or assignments, please wire in the necessary funds or close your position prior to the close of market on the last trading day prior to expiration. Please be aware that market conditions could dictate a forcible sellout in your account at any time, with or without notification, regardless of your intent to cover the amount due. Please call us at 800-669-3900 if you have any questions.

Most index options are European style. They can only be exercised at expiration. All in-the-money index options are automatically exercised upon expiration. Unlike exercising equity options, index options are settled with cash.

The last day to enter exercise instructions for American style index options is the Friday prior to expiration by 4 p.m. ET. At all other times, online exercise instructions for American style index options may only be entered between 8 a.m. and 3 p.m. ET. If you wish to submit exercise instructions at any other time, please call a Client Services representative at 800-669-3900.

You may submit a request to exercise long positions held in your account online by following these steps: How do I exercise my options?. To exercise an option with odd or multiple deliverables, please contact a TD AMERITRADE Trading representative.

Please note: On expiration day, all long equity options positions that are in-the-money by 0.25 of a point or more will be automatically exercised. All in-the-money index options will be automatically exercised on the day of expiration. TD AMERITRADE does not accept exercise instructions via e-mail.