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The uncertainty and potential exposure when a stock price and also the strike price would be the same at expiration is called pin risk. The best way in order to avoid it is actually to close the position before expiration.

It's automatic, for the most part. If an option is ITM by as little as $0.01 at expiration, it will automatically be exercised for the client and assigned to a seller.

The decision tree: Tips on how to approach expiration As expiration approaches, you have three choices. Depending on the conditions—and your objectives and risk tolerance—any of these might be the best decision in your case.

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