How Can I Lapse Long Options?


Account holders have the ability to lapse equity options (also known as providing contrary intentions) they hold long in their account.

From Trader Workstation, go to the Trade menu and select Option Exercise.

The Option Exercise window will appear and any long options you are holding will populate under the Long Positions column header. To lapse one of them, left-click on the light blue “Select” link under the Exercise Option column header for that particular option.

Select “Lapse” from the drop down menu.

Review the request, and click the blue “ T” Transmit button to submit the lapse request.

The Option Exercise Confirmation window will appear and will show how much the option is in-the-money. If the option is out-of-the-money, a warning message will appear. To submit the Lapse request, click the Override and Transmit button.

Your Lapse request will now show as an order line on your Trader Workstation until the clearinghouse processes the request.

Please note: Option lapses are irrevocable.

In the event that an option exercise cannot be submitted via the TWS, an option exercise request with all pertinent details (including option symbol, account number and exact quantity), should be created in a ticket via the Account Management window. In the Account Management window, click on "Inquiry/Problem Ticket". The ticket should include the words "Option Exercise Request" in the subject line. Please provide a contact number and clearly state in your ticket why the TWS Option Exercise window was not available for use.

Option Lapse Requests (whether received through the TWS Option Exercise window or by a ticket sent via Account Management/Message Center) must be submitted as follows:

Note: "Contrary intentions" are handled on a best efforts basis.