Owning the contracts gives you the right to sell them or buy the stock at the strike price. It's a contract....to do with as you please. Like a coupon for a 2$ pizza....if you don't use it or sell it before it expires it isn't of any use to anybody.

However most brokerages will auto exercise any contracts that are in the money at 4pm Fri of expiration...even if you don't have the money to cover the position...and then give you 2-3 days to liquidate or add cash to hold the position...so that you don't lose your entire investment....what else could you ask for?

I never take an option to expiration unless it's worthless. I always take profits before expiration...usually 7-10 days before expiration, if possible, to avoid the spike in Gamma risk.

Selling or buying them back before expiration for a profit is is what most of us try to do....that's the goal most of the time.

Thanks, appreciate it. While I've got you here I have another question about a RUT vertical that just expired on Mar 5. It was a +1200/-1220 put vertical. Do these types of derivitaves settle the next day? How exactly does that work?