Playing after hours stock movement with expiring options.

FSU said:
I'm not sure what else I can say. You have been posting here as long as I have and I like reading your comments. Not trying to fight with you, but you are wrong here. This is a trade I have done many many times. I posted the idea as I thought others might be interested.

You have a right to exercise your out of the money options (or cancel an automatic in the money exercise) on expiration Friday until 530pm et (or slightly earlier based on your broker). Thats why this play works. Automatic exercise is based on the 4pm closing price.

Also to add, options no longer technically expire on Saturday, they now expire at 1159pm on Friday night. This change was made 2015.
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Oh 100%!!!... this is totally non-hostile... I wanna know lol. I'm not picking a fight, and I 1000% respect your experience with this stuff if you've done it before. It has my interest piqued to the max.:thumbsup:
 
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vanzandt said:
Ok, I mean I could certainly be wrong on this. But assuming what you say is correct, if I have a $50 put on stock xyz, and xyz closes at $52, but after the bell on Friday it drops to $40 on some unexpected news... I now own a profitable contract if I jump thru the hoops by 5:30 or whatever time the broker says?
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Exactly correct. Your 50 put would not exercise automatically as it was out of the money, but you could notify your broker to exercise it when you see the stock fall. You could buy stock and exercise and lock in a profit, or you could exercise naked and be short stock.
 
FSU said:
Exactly correct. Your 50 put would not exercise automatically as it was out of the money, but you could notify your broker to exercise it when you see the stock fall. You could buy stock and exercise and lock in a profit, or you could exercise naked and be short stock.
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Hey, then I friggin' learned something worthwhile here finally. T/U.
 
vanzandt said:
Oh 100%!!!... this is totally non-hostile... I wanna know lol. I'm not picking a fight, and I 1000% respect your experience with this stuff if you've done it before. It has my interest piqued to the max.:thumbsup:
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Maybe if @rmorse is reading this, he could post Lightspeeds policies on exercises/contrary exercises on expiration day, along with cutoff times.
 
I wonder how many times I've been f'd by this over the years? :D
Probably not many. If any. There was one stock that tanked on a Friday PM that I recall, but I didn't have a position.
It's great to know though!
 
Maybe this is why no one reports after the bell on Friday. Except that one company that opted to do it out of the blue... I forget which one.... about 6 months ago.

Edit: found it... Palo Alto
 
FSU said:
Also to add, options no longer technically expire on Saturday, they now expire at 1159pm on Friday night. This change was made 2015.
More...
Do you recall the reasoning behind this? I remember the change but never understood why it was important
 
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