After the close on expiration day, ITM options are automatically exercised or assigned, whereas OTM options are not, and typically expire worthless (often referred to as being “abandoned”).

Can you exercise OTM calls?

"Out of the money" (OTM) refers to a situation where the strike price is higher than the market price for a call, or lower than the market price for a put. Professional traders may exercise OTM options at the time of expiration in order to eliminate risk.

Can out of the money options be assigned?

The chance of early assignment happens most often when the options are in-the-money (ITM), and although it is unlikely, even an option that is out-of-the-money (OTM), under certain circumstances, could be assigned at expiration. XYZ stock is currently trading at $80 per share.