hahaha. no you would not be that is true but if u are more than a bid offer in the size of the notional itm it would be strange not to. so i think they decided the opt out of really mental shit option is easier so you would have to tell them but prob better than them not exercising if you forget.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Going Through Call Option Expiration
- Thread starter Randy888
- Start date
You should REALLY take Gussian's suggestion. Stop until you understand more, you are missing some key concepts of the options world.This is funny. You have been trading for a week and are already blaming your losses on boogiemen.
You should review the OCC paperwork you signed.
http://www.cboe.com/education/getting-started/quick-facts/expiration-exercise-assignment
The CBOE has a quick sheet for you. The relevant section is as follows:
These are the rules of the game. In other words they will force you to meet margin or close it due to this rule. Moneyness matters here. Since we are talking about expiration, the type of expiration you are referring to only deals with ITM options. You are responsible for closing your contracts before expiration. The only people who carry them to expiration ITM are people who have an intention to exercise (for long options).
Why would you carry an ITM option to expiration only to not exercise it? Exercise allows you to achieve your maximum profit assuming the equity goes to the moon (call) or falls through the floor (put).
Or on the contrary (related to getting margin called), imagine you allow someone to carry an ITM short option to expiration and then they call your options desk and say "I dont have enough money to cover this trade, help me". The OCC is looking out for themselves here - as they should.
I would recommend you stop trading options for now and pick up a few books on the subject. Options are very complicated instruments and you need to understand all the rules of the game before playing.
1. If u make a deal with the broker that you wont exercise your option and he will not foce clise it. You have the free dom of gamblųng in the market for 2 whole hours and either expire your option of @3:45 pm stock price rises 30% and you sell your option making a lot of $. But in this case brokers comission is not guaranteed in case of stock going down.
2. Stop/loss.. nice so the stock price is going up constantly for 20 min and ur chanhing stop loss every 5 min. Fair enough.
3. Science Yo. Lets do this.
So we have a theory:
"Analysis was wrong, im guessing the analysis means that the stock will be up right(long call option)? But when @ the expiration time? 12pm/2pm /4pm.."
So if we fail to prove this is wrong, this is correct by default.
1. Stock has to be dow the whole day.. from open to close(false, stock was down for 15 min from 2pm )
On open it was +3% 2h later +7.5% @2:01pm 0% up 4pm 5% up...
2.if the analysis would be compl wrong yes ur right but in this case its not
3.
2. Stop/loss.. nice so the stock price is going up constantly for 20 min and ur chanhing stop loss every 5 min. Fair enough.
3. Science Yo. Lets do this.
So we have a theory:
"Analysis was wrong, im guessing the analysis means that the stock will be up right(long call option)? But when @ the expiration time? 12pm/2pm /4pm.."
So if we fail to prove this is wrong, this is correct by default.
1. Stock has to be dow the whole day.. from open to close(false, stock was down for 15 min from 2pm )
On open it was +3% 2h later +7.5% @2:01pm 0% up 4pm 5% up...
2.if the analysis would be compl wrong yes ur right but in this case its not
3.