Automatic exercise

A protection procedure whereby the Options Clearing Corporation attempts to protect the holder of an expiring in-the-money option by automatically exercising the option on behalf of the holder.

Automatic Exercise

The exercise of an in-the-money option without the holder's express authorization. That is, automatic exercise occurs at a certain point when the option is in-the-money even though the holder has not specifically requested the exercise. The Options Clearing Corporation practices automatic exercise when clearing option contracts, unless a holder requests otherwise.

automatic exercise

Exercise of an in-the-money option following expiration unless the holder issues instructions to the contrary.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Automatic exercise.

If you hold a call option, automatic exercise may occur if the contract is in-the-money by a certain amount.

In this case, an in-the-money contract is one where the strike price -- the price at which you would purchase the underlying instrument if the contract were exercised -- is lower than the market price of that instrument. Generally speaking, exercising your option in this situation would produce a profit on the transaction.

Certain options may be subject to automatic exercise authorized by the Options Clearing Corporation (OCC) unless you instruct them otherwise. Your brokerage firm may also have an automatic exercise policy.

Mentioned in

Barrier options

References in periodicals archive

24/7 guidance and motivation:Stay on top of all your daily activity and get a more complete picture of your overall health with features like automatic exercise recognition, Reminders to Move, Relax guided breathing, sleep tracking with Sleep Stages and Sleep Insights.

Fitbit refines new Charge 3 wearable

Another place where the Fitbit Versa stumbled a little bit was with automatic exercise detection.

Fitbit Versa review: Does its job, while looking good

TheFitbit Charge 2does all that well, and offers more on top of it: In addition to basic step tracking, continuous heart-rate monitoring, and sleep tracking, you also get automatic exercise tracking, silent alarms, and reminders to exercise and to practice mindful breathing.

Fitbit 2018: choose the right one for your lifestyle

The gadgets using a PurePulse heart rate technology provides automatic exercise recognition and new advancements in sleep tracking with up to 7 days' battery life.

Modern-age gadgets to combat noise pollution during Holi

Exercise speed training data from the 3-day preparatory training were acquired using the manual mode of the proposed running wheel exercise platform, which was used to construct a complete set of automatic exercise training models for the subsequent 3 weeks of exercise.

A forced running wheel system with a microcontroller that provides high-intensity exercise training in an animal ischemic stroke model

Canada-based global financial institution, CIBC (TSX: CM) (NYSE: CM), has said that its president and CEO, Victor Dodig, has, established a pre-arranged plan for the automatic exercise of options.

CIBC CEO to exercise options, donate proceeds to charity

30 September 2014 - Toronto-based financial services firm CIBC (TSX: CM) (NYSE: CM) said that president and CEO Victor Dodig has established a pre-arranged plan for the automatic exercise of options.

CIBC CEO Dodig to exercise stock options

According to behavioral study, the whole procedure of electrophysiologic/microdialysis experiment was divided into 5 conditions: rest condition; automatic exercise condition (15min after the start of exercise); 'early fatigue' condition; exhaustion condition and early period of recovery condition (30min after exhaustion), raw trace of electrophysiological signals under different conditions are as shown in Figure 4.

Modulatory effect of subthalamic nucleus on the development of fatigue during exhausting exercise: an in vivo electrophysiological and microdialysis study in rats

The maximum number of stock received related to the automatic exercise of the Class B warrants, if any, is one share per Class B warrant and will be determined by the stock price of the common shares prior to the termination date, the company said.

TONIX completes USD4.3m private placement of stock, warrants