If a SPY call finishes in the money (ITM) at expiration, it typically gets auto-exercised — meaning you'd exercise the right to buy 100 shares per contract at the strike. That has real consequences, which is a big reason scalpers close before expiration.
What auto-exercise means
Brokers generally automatically exercise options that finish ITM by even a small amount. For a call, exercising means buying 100 shares per contract at the strike price — so an ITM call at expiration can turn into a 100-share stock position (times your contracts) if you hold it through. That requires the capital to buy the shares and leaves you holding stock, not a neat cash settlement. (SPY options are American-style, physically-settled — different from cash-settled index options.)
Why this matters (and why scalpers avoid it)
You usually don't want the shares — you wanted the option's gain. If you simply sell the option before expiration, you capture its value as cash and avoid the whole exercise/assignment machinery. That's what nearly all scalpers do: close before the bell and never deal with exercise. Holding an ITM option to expiration unnecessarily can create an unwanted, capital-intensive share position (and related fees).
An ITM call at expiration wants to become 100 shares, not cash. If you just want the profit, sell the option first — that's the whole trick.
The quick takeaway
ITM at expiration usually means auto-exercise into a share position — capital-intensive and rarely what a scalper wants. The simple fix: sell the option before expiration to bank the gain as cash. See do I have to buy 100 shares and how NoVo handles assignment. NoVo's design has you exit the option well before expiration, so this scenario rarely arises.