Only long options are permitted at Suretrader (long calls and puts). The writing of options, even if they are covered are not allowed.
According to the Options Clearing Corporation (“OCC”) regulations, long equity and index option contracts are automatically exercised if in the money by $0.01 or more at expiration.
If, on the last business day prior to expiration, you have expiring long option position(s) in your account that are at risk of being auto-exercised, you should ensure that you liquidate the option position prior to 3:30 p.m. ET.
If the above requirement is not satisfied, SureTrader may at its discretion, with or without notice to you, begin liquidating option contracts that may be vulnerable to exercise.
If SureTrader fails to liquidate the necessary option position(s) by market close and your position(s) are exercised, you will be held responsible for the resulting long or short equity position(s). You will assume any market risk associated with those position(s).