In our options implementation exercising is not possible. Rather, the way you take profits on an options position is to "close out" the position. For example, to close a long call you would enter "sell to close" trade on an option contract with the same terms. Keep in mind here that you don't close out a long call by purchasing a put (or vice versa). Options are closed out by entering into a new transaction that (essentially) cancels out the original.
The complication here arises because there are double the number of transactions with options than regular stock transactions. With stock, you simply have buy, sell, short, and buy to cover. As demonstrated by the following tables, with options you have double the number of trades involved in entering and exiting a trade.
Stock transactions
| Enter trade with: | Exit trade with: |
| Buy | Sell |
| Short | Buy to Cover |
Option transactions
| Enter trade with | Exit trade with: |
| Buy to Open (call) | Sell to Close (call) |
| Buy to Open (put) | Sell to Close (put) |
| Sell to Open (call) | Buy to Close (call) |
| Sell to Open (put) | Buy to Close (put) |
If you have an in-the-money option at expiration, the system will automatically close out the position for you. This is similar to a procedure in real life called "exercise by exception" that relieves you of the burden of having to close out every one of your profitable option contracts at expiration. So, at expiration, you will receive the amount in cash that your contract is worth.