I had a couple of $RKLB CCs with a strike of $7 expiring yesterday. It was ranging between $6.90 and $7.05 in that last hour of the session, then I stopped checking as I was busy with something else. Apparently it closed at $6.99 (what my brokers shows, some other sources show $6.96 but in any case it's below the $7 strike). And my shares are still in my account, too. So obviously I haven't been assigned.
It makes sense to me as the closing price was a penny below the strike price and the contract expired worthless. But I was also reading some days ago that options get auto-exercised in the last half hour or so, like not necessarily the final seconds of the session.
So could that happen? Say if the price was $7.05 5 minutes before close. Could someone's broker have auto-exercised, I get assigned and my shares would be sold for $7?
Posted by Cagliari77