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.

Unless the lapse request is final it is still considered a position in the credit system and subject to the expiration exposure calculations. The Orders page of Global Configuration provides a selection box where you can specify that an option exercise request be final, and therefore cannot be canceled or editable until the cutoff time (default), which varies by clearing house. To specify this parameter, from the Mosaic File menu or Classic Edit menu, select Global Configuration and go to Orders followed by Settings from the configuration tree on the left side. Make your selection using the “Option exercise requests are” drop down menu. Please note that some contracts will not follow this rule and will remain revocable up until the clearing house deadline.

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.