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Why is buying stock options close to the expiry not allowed?

You cannot take fresh buy positions or long positions in OTM stock options during the last two days before expiry since the contracts can become due for physical settlement. However, you can exit open short positions for the quantity you hold. Your margin requirements can exponentially increase if your option contracts become due for physical delivery. Since stock options can be illiquid, it becomes difficult to exit the contract, which increases the risk for the brokerage firm.

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