What percentage of in the money call options get exercised?

[toben]

I always heard that most call options dont get exercised. If I own the stock and sell the call option, what are the odds that the person who bought the option will let it expire if it is in the money?

 

[forex-forex]

Quote from toben:

I always heard that most call options dont get exercised. If I own the stock and sell the call option, what are the odds that the person who bought the option will let it expire if it is in the money?

100% guarantee your stock gets called away if the options are ITM when they expire. No free lunch.

 

[bh_prop]

Odds of in the money call *not* being exercised at expiration are zero. They are automatically exercised.

 

[toben]

Several years ago I was not paying attention and let a small amount of in the money options expire. What happened to the writer of those options?

 

[forex-forex]

Quote from toben:

Several years ago I was not paying attention and let a small amount of in the money options expire. What happened to the writer of those options?

If they were $0.25* - or more - ITM then the writer lost his shares.

* I believe it was $0.25 a few years ago.

 

[toben]

Who gets the shares on the cheap when someone doesnt exercise them? The market makers? Etrade?

 

[forex-forex]

Quote from toben:

Who gets the shares on the cheap when someone doesnt exercise them? The market makers? Etrade?

Holder of the long calls.

 

[toben]

what if the holders of the long call options forget to exercise them?

 

[forex-forex]

Quote from toben:

what if the holders of the long call options forget to exercise them?

Then he is the proud owner of 100 shares per contract on Monday.

 

[toben]

I am assuming from your wording there is a differance between a call and a long call option...