POLL: According to a study, what do you believe % of Options expired worthless?

[monkfish]

interesting thread.

 

[El OchoCinco]

All my options expire worthless....

mainly because I close the ones with premium be they long or short well before then as do many people.

 

[Don Bright]

Quote from nutmeg:

http://www.traders.com/Documentation/FEEDbk_docs/Archive/012001/Abstracts_new/McMillan/McMillan.html



The reason I used 0.625? It is the amount by which an option must be in-the-money in order for the Options Clearing Corp. (OCC) to automatically exercise it.
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From the OIC (Options Indusstry Council):


EXERCISE THRESHOLDS

The Options Clearing Corporation ("OCC") uses the 5 cent threshold for customer orders, but your firm may have a different threshold.

Expiring options subject to exercise by exception use the following thresholds to trigger exercise:

Equity options: .05 per contract in-the-money in the customer account; .05 per contract in-the-money in firm and market maker accounts. Index options: $.01 per contract in-the-money in all account types.


http://www.888options.com/help/faq/exercise.jsp#6


Not disputing anything, I was just caught off-guard by a 62 cent ITM threshold. Back on the Floor the used a quarter point for auto exercise, things change.

All the best,

Don

 

[pv150]

There's no point of reference so looking at a whole book of contracts trading around the strike, it'll be about 50% above and 50% below. Depending on who opened what positions it'll be around 50%. But that's meaningless. The OP is misquoting the question about what % of OTM contracts expire worthless (gain no intrinsic value).

 

[FCostella]

Quote from rcanfiel:

Ah yes, the Liberty spam emails claiming "stop buying options and start selling them!"

It's like having an ATM in your living room. Just keep rolling them over.

 

[J-Law]

Read the book it explains alot.....

http://www.amazon.com/Complete-Guid...bs_sr_1?ie=UTF8&s=books&qid=1197598426&sr=1-1