Option Expiry D-1, 7 Practical Steps to Close Positions, Why It Matters

Option expiry D-1, close your positions now!!!

The key to avoiding panic on expiry day or the day before is to set procedures in advance.

Retail trader: "What do I do, I still hold both calls and puts!"

Do not worry. Just follow the steps.

When is settlement finalized?

Check exchange rules for the settlement date and last trading time.

Exchange trading hours: check the latest exchange notice for current standards

Misunderstanding the timing can trigger unintended settlement.

Option strike price → the price used when exercising the right.

What to check in positions before expiry?

All balances: check buy/sell quantities

Unrealized PnL: check current profit and loss

Margin balance: check if additional margin is required

One number decides liquidation or rollover.

Organize everything on your account inquiry screen at once.

Which to choose: liquidate, roll over, or exercise?

Liquidation, removing the position by offsetting in the market.

Rollover, moving the expiring position to the next expiry.

Exercise, executing the option to trade the underlying asset.

The choice depends on your objective (risk reduction vs maintaining strategy).

Practical 7 steps (for beginners)

→ Step 1: Check the expiry schedule, mark the last trading time and settlement time on your calendar.

→ Step 2: Check all account balances, margin, and open contracts.

→ Step 3: Quantify PnL per position and the risk you can bear.

→ Step 4: Decide quantities to liquidate and quantities to roll over.

→ Step 5: Submit liquidation orders with room to spare, using limit orders split into parts.

→ Step 6: When rolling over, compare target expiry, premium, and fees.

→ Step 7: After settlement, recheck balances and deposit/withdrawal history without fail.

Do not try to do everything at once, follow the checklist step by step.

Fees and taxes → check the latest standards with your broker or tax authority.

Which order types to use?

Limit order → set a price and wait for execution.

Market order → immediate execution but slippage may occur.

On expiry day liquidity can vary, so limit orders split into parts are safer.

Unexpected situations?

Disable system options like automatic settlement and one-click exercise in advance.

Have customer support contact routes ready.

A small setting can prevent a large loss.

So, what to start with

→ 1. Mark today s expiry schedule and last trading time on your calendar.

→ 2. Immediately check all account balances, margin, and open contracts.

→ 3. Decide liquidation quantities and place split limit orders first.

Please use this as a reference only!

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※ This article is for information only and is not investment solicitation.

※ Investment decisions and responsibilities lie with the investor.

※ Figures are based on the time of writing and may change.