Does CommSec automatically exercise options?
On the date of expiry at the close of business, CommSec will automatically exercise any long Options positions set to expire in the money.
Auto-exercise will be actioned for Options scenarios outlined below:
- Any long equity Options position that is in the money by 1c or more, compared to the closing price of the underlying security on expiry date. When an equity Options position is exercised, it is settled via the linked CommSec Share Trading Account. It is your responsibility to ensure that you have the cash in the linked settlement bank account or security on your Share Trading Account to settle the transaction.
- Any long index options position that is in the money by 0.1 point or more, compared to the index options settlement price. This is determined by the Opening Price Index Calculation (OPIC) on the morning of the expiry date. When an index Options position is exercised, this is cash settled via the Options Account which is then debited or credited through the linked settlement bank account.
Please note: Although an Option position is in the money and exercised automatically, you could still make a loss after taking fees and potential adverse market movement into account.
What if I do not want my options position to be automatically exercised?
If you do not want to exercise an in the money options contract, you must contact CommSec on the options expiry date prior to 4:30 pm (Sydney Time). We will accept verbal instructions not to exercise the options. Your request will effectively cancel your Options contract, which cannot be reversed.
For further clarification, please call the CommSec Options Desk on 1800 245 698 (8am to 5:30pm, Monday to Friday, Sydney time).
