If you want to exercise your long options, you need to submit exercise instructions on the platform in Balances & History > Position History. 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 4pm 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.
Exercise instructions come available starting 24 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 Dec 2020 expiration and want to exercise.
- Navigate to Balances & History > Position History
- View your expiring position
- Enter the number of contracts you want to exercise in the Exercise/Assignment Size column
- Click Save
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 100 put contracts Dec 2020 expiration and want to exercise.
- Navigate to Balances & History > Position History
- View your expiring position
- Enter the number of contracts you want to exercise in the Exercise/Assignment Size column
- Click Save
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 2020-12-18 Call $30,000. You want to change your instructions to only exercise 70 of your 100 contracts.
- Navigate to your expiring position
- Enter the number of contracts you want to exercise (70)
- Click Save
