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.

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, ex [..]

Definition The procedure that prevents in-the-money equity options from expiring and becoming worthless. In this procedure, the clearing firm will exercise certain kinds of options that are in the mon [..]

Following options expiration, an option which is in-the-money is exercised automatically by the clearinghouse, unless the holder of the option submits specific instructions to the contrary. Please refer to individual contract specifications for Automatic Exercise guidelines. 

Protection mechanism for option holder whereby the Option Clearing Corporation automatically ensures the exercising of an option for the holder that is “in the money”.

A commonly used election whereby an option or swaption transaction is deemed to be exercised provided that it is in the money on the exercise date without the need to serve notice. Average rate option

The exercise by the clearing house of an in-the-money option at expiration, unless the holder of the option submits specific instructions to the contrary.

automatic performance of an option contract, due to the option expiring in-the-money

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.