Let an Option Lapse
Use the Option Exercise window to lapse options which would otherwise automatically be exercised on Expiration Friday according to OCC rules.
NOTE: You can only instruct the OCC to let options lapse on Expiration Friday.
From the View menu, select Option Exercise.
In the Option Exercise window, highlight the option you want to lapse in the Current Long Option Positions portion of the window.
Click Lapse.
Review/modify the number of contracts you want to lapse and click OK.
NOTE: You cannot enter a value greater than the quantity in the Current Long Option Positions box.
Review your selection, and click "Yes" at the message that asks if you're sure you want to let the selected option lapse.
The lapsed option appears in the Outstanding Lapses portion of the window until it is cleared by the OCC.