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[Options Feature Update] How much money is actually saved when an end-of-term option is not exercised?

Here it is, here it is! The fellow investor that thousands upon thousands of fellow investors have been eagerly calling for[Option Exercising Waiver Capability]It's online!
Understand It All in One Article—The New Member of the Options Family—Option Exercising WaiverWhat is it for, and how do you use it?
🤔What is surrendering the right to exercise?
1. What is exercise of an option?
As the option buyer (long position), in-the-money options will be automatically exercised upon expiration.
Exercising an option, as the name suggests, means exercising the right. The most common method is to have sufficient funds on hand and, at the option's strike price, purchase the corresponding number of shares.
2. You need to have a sum of money ready when exercising the option.
Before the "Waive Exercise" feature is launched, as the option expiration date approaches, Futu will ensure that there are sufficient funds in the account to "buy stocks" when exercising the option.Simulated Exercise。
If the account balance is insufficient at this time, the account's risk status will be flagged as "Dangerous," and you must top up the account promptly.
3. Save this amount of money after the feature goes live.
What if I don't want to exercise my power?
You can now choose to "forfeit exercise" on your options. When the option expires, it will not be exercised, and you won't need to set aside the funds required for exercise, significantly improving capital efficiency and giving you more purchasing power to pursue other trades!
💁How to choose not to exercise the option?
1. Trading tab — U.S. / Hong Kong stock account page — Tap "All" — "Exercise Options"
Here it is, here it is! The fellow investor that thousands upon thousands of fellow investors have been eagerly calling for[Option Exercising Waiver Capability]It's online! Understand It All in One Article—The New Member of the Options Family—Option Exercising WaiverWhat is it for, and how do you use it? 🤔What is surrendering the right to exercise? 1. What is exercise of an option? As the option buyer (long position), in-the-money options will be automatically exercised upon expiration. Exercising an option, as the name suggests, means exercising the right. The most common method is to have sufficient funds on hand and, at the option's strike price, purchase the corresponding number of shares. You need to have a sum of money ready when exercising the option. Before the 'Waive Exercise' feature is launched, as the option expiration date approaches, Futu will ensure that there are sufficient funds in the account to 'buy stocks' when exercising the option.Simulated Exercise。 If the account balance is insufficient at this time, the account's risk status will be flagged as 'Dangerous,' and you must top up the account promptly. Save this amount of money after the feature goes live. What if I don't want to exercise my power? You can now choose to 'forfeit exercise' on your options. When the option expires, it will not be exercised, and you won't need to set aside the funds required for exercise, significantly improving capital efficiency and giving you more purchasing power to pursue other trades! 💁How to choose not to exercise the option? 1. Trading tab — U.S. / Hong Kong stock account page — Tap "All" — "Exercise Options" 2. Select the options you do not intend to exercise—click "Exercise"—enter the number of options you wish to waive—confirm the information 3. Once the waiver of exercise is confirmed, on the expiration date at the close of trading, purchasing power will no longer...
2. Select the options you do not intend to exercise—click "Exercise"—enter the number of options you wish to waive—confirm the information
Here it is, here it is! The fellow investor that thousands upon thousands of fellow investors have been eagerly calling for[Option Exercising Waiver Capability]It's online! Understand It All in One Article—The New Member of the Options Family—Option Exercising WaiverWhat is it for, and how do you use it? 🤔What is surrendering the right to exercise? 1. What is exercise of an option? As the option buyer (long position), in-the-money options will be automatically exercised upon expiration. Exercising an option, as the name suggests, means exercising the right. The most common method is to have sufficient funds on hand and, at the option's strike price, purchase the corresponding number of shares. You need to have a sum of money ready when exercising the option. Before the 'Waive Exercise' feature is launched, as the option expiration date approaches, Futu will ensure that there are sufficient funds in the account to 'buy stocks' when exercising the option.Simulated Exercise。 If the account balance is insufficient at this time, the account's risk status will be flagged as 'Dangerous,' and you must top up the account promptly. Save this amount of money after the feature goes live. What if I don't want to exercise my power? You can now choose to 'forfeit exercise' on your options. When the option expires, it will not be exercised, and you won't need to set aside the funds required for exercise, significantly improving capital efficiency and giving you more purchasing power to pursue other trades! 💁How to choose not to exercise the option? 1. Trading tab — U.S. / Hong Kong stock account page — Tap "All" — "Exercise Options" 2. Select the options you do not intend to exercise—click "Exercise"—enter the number of options you wish to waive—confirm the information 3. Once the waiver of exercise is confirmed, on the expiration date at the close of trading, purchasing power will no longer...
3. Once you confirm the waiver of exercise, your purchasing power will not decrease on the expiration date.
Here it is, here it is! The fellow investor that thousands upon thousands of fellow investors have been eagerly calling for[Option Exercising Waiver Capability]It's online! Understand It All in One Article—The New Member of the Options Family—Option Exercising WaiverWhat is it for, and how do you use it? 🤔What is surrendering the right to exercise? 1. What is exercise of an option? As the option buyer (long position), in-the-money options will be automatically exercised upon expiration. Exercising an option, as the name suggests, means exercising the right. The most common method is to have sufficient funds on hand and, at the option's strike price, purchase the corresponding number of shares. You need to have a sum of money ready when exercising the option. Before the 'Waive Exercise' feature is launched, as the option expiration date approaches, Futu will ensure that there are sufficient funds in the account to 'buy stocks' when exercising the option.Simulated Exercise。 If the account balance is insufficient at this time, the account's risk status will be flagged as 'Dangerous,' and you must top up the account promptly. Save this amount of money after the feature goes live. What if I don't want to exercise my power? You can now choose to 'forfeit exercise' on your options. When the option expires, it will not be exercised, and you won't need to set aside the funds required for exercise, significantly improving capital efficiency and giving you more purchasing power to pursue other trades! 💁How to choose not to exercise the option? 1. Trading tab — U.S. / Hong Kong stock account page — Tap "All" — "Exercise Options" 2. Select the options you do not intend to exercise—click "Exercise"—enter the number of options you wish to waive—confirm the information 3. Once the waiver of exercise is confirmed, on the expiration date at the close of trading, purchasing power will no longer...
⚠️ Frequently Asked Questions?
1. Which markets' options are supported?
Both Hong Kong stock options and U.S. stock options are supported.
2. When can the "waiver of exercise" be submitted?
From the date of option holding until the close of the expiration day, you may submit a "Waiver of Exercise" request.
3. Is early exercise supported?
Early exercise is currently not supported.
4. Once "Waive Exercise" is submitted, can it be revoked?
It can be revoked. The specific steps are as follows:
1) Go to the options exercise page, click on the target option, and after accessing the exercise page, click [Cancel Application].
Here it is, here it is! The fellow investor that thousands upon thousands of fellow investors have been eagerly calling for[Option Exercising Waiver Capability]It's online! Understand It All in One Article—The New Member of the Options Family—Option Exercising WaiverWhat is it for, and how do you use it? 🤔What is surrendering the right to exercise? 1. What is exercise of an option? As the option buyer (long position), in-the-money options will be automatically exercised upon expiration. Exercising an option, as the name suggests, means exercising the right. The most common method is to have sufficient funds on hand and, at the option's strike price, purchase the corresponding number of shares. You need to have a sum of money ready when exercising the option. Before the 'Waive Exercise' feature is launched, as the option expiration date approaches, Futu will ensure that there are sufficient funds in the account to 'buy stocks' when exercising the option.Simulated Exercise。 If the account balance is insufficient at this time, the account's risk status will be flagged as 'Dangerous,' and you must top up the account promptly. Save this amount of money after the feature goes live. What if I don't want to exercise my power? You can now choose to 'forfeit exercise' on your options. When the option expires, it will not be exercised, and you won't need to set aside the funds required for exercise, significantly improving capital efficiency and giving you more purchasing power to pursue other trades! 💁How to choose not to exercise the option? 1. Trading tab — U.S. / Hong Kong stock account page — Tap "All" — "Exercise Options" 2. Select the options you do not intend to exercise—click "Exercise"—enter the number of options you wish to waive—confirm the information 3. Once the waiver of exercise is confirmed, on the expiration date at the close of trading, purchasing power will no longer...
2) After submitting the cancellation, the system will take some time to process it. Upon successful cancellation, "Cancelled" will be displayed on the page.
Here it is, here it is! The fellow investor that thousands upon thousands of fellow investors have been eagerly calling for[Option Exercising Waiver Capability]It's online! Understand It All in One Article—The New Member of the Options Family—Option Exercising WaiverWhat is it for, and how do you use it? 🤔What is surrendering the right to exercise? 1. What is exercise of an option? As the option buyer (long position), in-the-money options will be automatically exercised upon expiration. Exercising an option, as the name suggests, means exercising the right. The most common method is to have sufficient funds on hand and, at the option's strike price, purchase the corresponding number of shares. You need to have a sum of money ready when exercising the option. Before the 'Waive Exercise' feature is launched, as the option expiration date approaches, Futu will ensure that there are sufficient funds in the account to 'buy stocks' when exercising the option.Simulated Exercise。 If the account balance is insufficient at this time, the account's risk status will be flagged as 'Dangerous,' and you must top up the account promptly. Save this amount of money after the feature goes live. What if I don't want to exercise my power? You can now choose to 'forfeit exercise' on your options. When the option expires, it will not be exercised, and you won't need to set aside the funds required for exercise, significantly improving capital efficiency and giving you more purchasing power to pursue other trades! 💁How to choose not to exercise the option? 1. Trading tab — U.S. / Hong Kong stock account page — Tap "All" — "Exercise Options" 2. Select the options you do not intend to exercise—click "Exercise"—enter the number of options you wish to waive—confirm the information 3. Once the waiver of exercise is confirmed, on the expiration date at the close of trading, purchasing power will no longer...
Note: If the system determines that revoking the action would result in the account being placed in a risk status, the revocation cannot be performed.
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Follow "Play to Earn Bull & Bear" to learn more practical strategies and product updates on options, futures, and callable bull/bear certificates.
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
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