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

You probably never worked professionally trading options but if OCC made any execution decisions then they wound also execute OTC options and they definitely don't because if you don't give notice then your OTC option expires worthless, in or out of the money (there are actually quite a few stories how large sell side banks' middle and back offices failed to issue an execution notice and their itm options expired worthless). OCC and other international clearing houses settle contracts per instructions from their clearing members. OCC started to settle spx index OTC options in 2013 or 2014 if I recall correctly and take instructions from what they call "approved OTC trade source".

In the same manner they settle listed options and take instructions from the listing exchanges.

BlueWaterSailor said:
Yeah, m'kay. You know better than brokers and the OCC itself do. Good luck with all that.
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M.W. said:
You probably never worked professionally trading options but if OCC made any execution decisions then they wound also execute OTC options ...
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[rolling eyes] Blah, blah, blah. Dude, stop defending your ego already - you look like a tick desperately trying to stay attached to somebody's hairy ass in the hope of something good happening. Drop off already.

If this actually mattered to you, you'd look up OCC's rule 805 and be done. But nooooo, you've got to prove (mostly to yourself) that you're Not Wrong(tm)...

First hit, from the SEC citing the relevant rule for Ex-by-Ex:

https://www.sec.gov/rules/sro/phlx/2010/34-62710.pdf

The Options Clearing Corporation (“OCC”) has an established procedure, under OCC Rule 805, that provides for the automatic exercise of certain options that are in-the-money by a specified amount known as “Exercise-by-Exception” or “Ex-by-Ex.” Under the Ex-by-Ex process, options holders holding option contracts that are in-the-money by a requisite amount and who wish to have their contracts automatically exercised need take no further action. However, under OCC Rule 805, option holders who do not want their options automatically exercised or who want their options to be exercised under different parameters than that of the Ex-by-Ex procedures must instruct OCC of their “contrary intention.”
 
Overnight said:
the Big Short. Painful movie to watch.
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The Big Short was a painful movie to watch.
That film tried too hard to be funny, quirky, innovative and snappy and intelligent and mass appealing and modern.

Sitting through it felt annoying and messy. And so was The Wolf of Wall Street. Or, I'm just getting old and boring. Who knows,
 
This does not change the fact that any and all exercising instructions are not made by the OCC but issued to the OCC by either the exchange that an option is listed at or by the member firm that holds the contract. The rule you cited merely mentions what happens if no instruction is issued. It is a catch-all rule.

BlueWaterSailor said:
[rolling eyes] Blah, blah, blah. Dude, stop defending your ego already - you look like a tick desperately trying to stay attached to somebody's hairy ass in the hope of something good happening. Drop off already.

If this actually mattered to you, you'd look up OCC's rule 805 and be done. But nooooo, you've got to prove (mostly to yourself) that you're Not Wrong(tm)...

First hit, from the SEC citing the relevant rule for Ex-by-Ex:

https://www.sec.gov/rules/sro/phlx/2010/34-62710.pdf

The Options Clearing Corporation (“OCC”) has an established procedure, under OCC Rule 805, that provides for the automatic exercise of certain options that are in-the-money by a specified amount known as “Exercise-by-Exception” or “Ex-by-Ex.” Under the Ex-by-Ex process, options holders holding option contracts that are in-the-money by a requisite amount and who wish to have their contracts automatically exercised need take no further action. However, under OCC Rule 805, option holders who do not want their options automatically exercised or who want their options to be exercised under different parameters than that of the Ex-by-Ex procedures must instruct OCC of their “contrary intention.”
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M.W. said:
CME states that it itself auto executes and submits the instructions to OCC.
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cme does futures. I couldn’t find anything about the cme submitting to the occ. they have their own clearing mechanism.

we are talking about equity options.
 
Where does it state that in the original post? And it's irrelevant whether it's listed stock options, 8ndex options or options on futures. The instructions, if and when sent, always originate from the OCC members not the OCC itself. You are happy to disagree, I don't care. For what it's worth a second ago you even accused me for citing CME alleging they don't list options. You are entitled to your opinion. I know how option contracts work and how they are settled I worked in this industry for a long time. Feel free to respond or not, but I won't anymore as you two clearly seem to be on a personal vendetta rather than caring about the topic of interest.

newwurldmn said:
The conversation is about equity options. Not options on futures.

it’s pretty clear what the conversation was about. You are trying to explain away your wrong answer.
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M.W. said:
Feel free to respond or not, but I won't anymore as you two clearly seem to be on a personal vendetta rather than caring about the topic of interest.
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:rolleyes::rolleyes::rolleyes:

This is purely hilarious. Sure, it's a standard pattern of behavior for desperate losers... but seeing it play out in this kind of a textbook fashion is still amusing as hell.

You came in here chasing me to make a weak-ass (and wrong) argument against what I'd written; it's pretty obvious who here has a grudge. What's more, a professional, experienced trader has also told you that you're wrong... and you just folded that right into your paranoid vision of "OMG, they're all after me".

Go to your nearest ER and ask for a psych intervention, dude. Now. Don't delay.
 
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