ISX options come at me, page-10

Hi all, im new to ISX but have been reading all your insightful comments. Appreciate the thoughtful discussions. Just thought I'd add my two cents regarding this options discussion, as I've traded various options in other companies for some time now.

In Australia, if you own options that are 'in the money' at expiry date, they are (generally) automatically settled. That means you do not need to 'Exercise' the options per se and accordingly, you don't need to front the capital to purchase the underlying shares. Your broker should just close out the deal and forward your profit to your account. I trade with Comsec which does it this way.

In this (ISX) scenario for hypothetical example:

If I owned 1 option with the exercise price of 50c, and the share price is 60c on the option expiry date, then Comsec would just forward me the 10c profit. It is equivalent to me exercising the option for 50c and then immediately selling the share for 60c, however I do not need to provide the upfront capital of 50c to complete the trade.

See here:

https://www.commsec.com.au/support/frequently-asked-questions/204.html

Kind regards to all