An exceptional procedure to exercise expiring in-the-money options in order to protect option holders against their options turning out-of-the-money. This was initially done by the Options Clearing Corporation (OCC) where, if not instructed to refrain from doing so, it automatically exercises stock options that are 75 cents or more in the money, and all index options that turn in-the-money notwithstanding by how much.
November 19, 2023