Expiration date...Option closes ATM. Will it be called away??

[TheDawn]

I've traded for many years. About 25 years ago I had an option expire at the money. I didn't know if it would be called away. Back then each trade cost me about $30. per trade (if you can believe it...Full service brokerage). They chose not to exercise the option. An example the option is for $30. and the price close is at $30.

Will it depend on where it is after hours?? What if after hours it doesn't move, or moves up and down then remains ATM? What will happen on the next day (Saturday) at noon?

I know the buyer can exercise, but will they...

Will the MM push the trade forward??

Thanks...Just curious

Ah good old pin risk. https://www.investopedia.com/terms/... is the uncertainty,50-strike would be pinned. There are a lot of price manipulations to push the price one way or another according to this article and it all depends on the open interest of the option.

 

[BlueWaterSailor]

Hmm, why 1200? If they are $1 dollar strike, the stock is at 12, and you have 10 of the options, that's 1000 shares at 12 bux per share on exercise, it would be about $12K, no?

I was thinking of spot at $13 - remember, I'd have to pay for that $1 strike - and P&L per lot. Brandi (or was it Candi? May have been Cyndi) and I still have to figure out who gets how much of the take, and those girls are predatory.

 

[M.W.]

CME states that it itself auto executes and submits the instructions to OCC.

I don’t think the exchange has anything to do with exercising or assignments. All instructions are passed to and managed by the OCC. the occ determines which member firm holding a short position will be assigned and then the member firm can decide which account will take the assignment.

So you can buy your option from the Pcoast and when you exercise, someone who sold on the amex is assigned.

 

[M.W.]

Someone got triggered. Peace out my friend, I was referring what CME quotes on its website.

Oh, look - a stalker who has followed me from another thread in order to try nitpicking at a microscopic detail! How sweet. I still won't take money from you to let you lick my toes, though. You really should give that up before... uh, never mind; it was creepy from the first moment.

Oh, and - to randomly pick a broker - here's what TW has to say about it (emphasis mine):

The Options Clearing Corporation (OCC) will automatically exercise any expiring equity/ETF option(s) that close in the money by at least $0.01.

 

[BlueWaterSailor]

CME states that it itself auto executes and submits the instructions to OCC.

That would be because some houses settle in-house, at least partially. Whatever is left over gets sent to the OCC.

 

[BlueWaterSailor]

Someone got triggered. Peace out my friend, I was referring what CME quotes on its website.

Oh, is being triggered a thing in your psyche? I guess that was rather obvious when you went on your psycho Marxist rant on the other thread. But hey, now you're calling me your friend, so I guess it's all settled in what you call your "mind"...

Please make sure you're up on your meds. That bipolar stuff is kicking in hard, and I'd hate for even a stranger like you to hurt yourself.

 

[Overnight]

I was thinking of spot at $13 - remember, I'd have to pay for that $1 strike - and P&L per lot. Brandi (or was it Candi? May have been Cyndi) and I still have to figure out who gets how much of the take, and those girls are predatory.

Good gosh, the Big Short. Painful movie to watch.

I'll take all three...Brandi, Cyndi and Candi.

 

[M.W.]

OCC does not make any decisions itself whatsoever, it acts purely upon instructions. You might want to read up on this.

That would be because some houses settle in-house, at least partially. Whatever is left over gets sent to the OCC.

 

[BlueWaterSailor]

Good gosh, the Big Short. Painful movie to watch.

I'll take all three...Brandi, Cyndi and Candi.

Man, that's a lot of toe licking. Better stock up on water.

And 10 calls won't be enough for all three. Have your people call my people; we'll talk.

 

[BlueWaterSailor]

OCC does not make any decisions itself whatsoever, it acts purely upon instructions. You might want to read up on this.

Yeah, m'kay. You know better than brokers and the OCC itself do. Good luck with all that.