How do I exercise options?

If you want to exercise your long options, you need to submit exercise instructions on the platform under Balances & History > Exercise Instructions. Alternately you can head over to My Dashboard > Positions. There is no auto-exercise, meaning LedgerX will not exercise options on your behalf.

Options on LedgerX are physically-settled and there is no settlement index, meaning LedgerX will not determine if your options are in-the-money or out-the-money at settlement. Exercise is dependent on the user submitting exercise instructions on the platform. 

  • Options Expiration is @ 4pm ET on the expiration date. When options expire, they can no longer be traded. Traders have until 4 pm ET to trade or close out of expiring positions. See Closing a Position.
  • Options Settlement is @ 5pm ET on the expiration date. Long holders have until 5pm ET to submit exercise instructions.

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Exercise instructions come available starting 48 hours before options settlement. You will see the upper right bell icon highlighted in yellow when instructions are available.

 

Exercise Call Options

When you exercise a long call option, you are buying bitcoin at the USD strike price. You need USD on the platform to submit exercise instructions. 

You are long 100 call options for the Mar 2021 expiration and want to exercise.

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Exercise Put Options

When you exercise a long put option, you are selling bitcoin at the USD strike price. You need bitcoin on the platform to submit exercise instructions. 

You are long 10 put contracts Mar 2021 expiration and want to exercise.

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Change Exercise Instructions

The long holder can edit instructions any time up until 5pm ET on expiration. 

You submitted instructions to exercise 100 of 100 BTC 2021-5-5 Call $10,000. You want to change your instructions to only exercise 50 of your 100 contracts.

  • Navigate to your expiring position
  • Enter the number of contracts you want to exercise (70)
  • Click Save Edit

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Post Settlement

Expired Positions will be displayed under Balances and History>Position History

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