10 votes

What happens to all of the options when they expire?

Options that are not worth exercising just expire. Options that are worth exercising are typically exercised automatically as they expire, resulting in a transfer of stock between the entity that ...
8 votes

Do card chips expire before the cards do?

No, the data on the chip should match that of the magnetic stripe and what's directly printed on the card. Likewise, there's not really a difference between the two chips - they're laid out a bit ...
  • 2,077
5 votes

Credit Card Expiration: Am I supposed to request a new one or does the bank send one automatically?

I know this is 4 year old thread. But for future reference, my bank did not send me new card after expiry and when I checked with them agent said this due to inactivity of the account. He said it is ...
5 votes

Why would someone buy a way out-of-the-money call option that's expiring soon?

It could be that the contracts were bought at cheaper prices such as $.01 earlier in the day. What you see there with the bid and ask is the CURRENT bid and CURRENT ask. The high ask price means ...
  • 51
5 votes

Found expired check issued by title company to settle balance from 6 years ago

The laws on unclaimed funds vary from state to state and country to country. The check is likely expired. In the U.S. most banks will not cash one older than six months. You have a couple options: ...
  • 23.8k
4 votes

Are there major credit cards without expiration dates?

No. Card expiration dates are a required variable for processing payments on all payment networks i've interacted with both as a user, seller, and developer of backend payment systems. Even if such a ...
  • 1,993
4 votes

What happens to all of the options when they expire?

Firstly "Most option traders don't want to actually buy or sell the underlying stock." THIS IS COMPLETELY UTTERLY FALSE Perhaps the problem is that you are only familiar with the BUY side of options ...
  • 1,048
3 votes

I sold call options that expired ITM. Why were they not exercised?

There are two possibilities: Settlement of the stock hasn't shown up in your account and will do so by Monday morning You are the most incredibly lucky guy in the option writing world (not likely)
3 votes

How to sell a worthless option

The market maker will always take it off your hands. Just enter a market sell order. It will cost you a commission to pull the loss into this year. But that's it.
3 votes

How to sell a worthless option

Sounds like an illiquid option, if there are actually some bidders, market makers, then sell the option at market price (market sell order). If there are not market makers then place a really low ...
  • 20.1k
3 votes

Why would someone buy a way out-of-the-money call option that's expiring soon?

Perhaps it was to close a short position. Suppose the seller had written the calls at some time in the past and maybe made a buck or two off of them. By buying the calls now they can close out the ...
  • 140
2 votes

Why would someone buy a way out-of-the-money call option that's expiring soon?

I think the best answer that doesn't make the buyer look like a moron is this. Buyer had previously sold a covered call. They wanted to act on a different opportunity so they did a closing buy/write ...
2 votes
Accepted

Why out of money options show no bid price but a valid ask price

Looking at the SPY option chain you posted, all of the call options with a strike price of 199.50 or higher have a bid of N/A. That's because the ask price for all of those options is 0.01, and the ...
  • 3,511
2 votes
Accepted

How long can a company wait before withdrawing the money of a purchase?

I paid with my Visa credit card. Generally on credit cards, the holds / authorizations are valid for a month on single transactions. So if you haven't been charged on your card, it seems that there ...
  • 56.6k
2 votes

What happens to all of the options when they expire?

To answer your follow up questions, the fundamentals of option trading means that there will always be a balance in options. Every time one party sells a contract, there is a buying party on the other ...
  • 532
2 votes

Why are option contracts dated for Friday expiration instead of Saturday expiration?

Options cease trading at 4 PM EST on the last day of the expiration. Per the NASDAQ, an option owner has until 5:30 PM to exercise. The actual expiration time is not until 11:59 PM EST on Saturday, ...
2 votes

Usual procedure when options/futures/forwards expire?

I'll address the equity/index options aspect of this. If an option is one cent or more ITM at expiration, the Option Clearing Corp (OCC) will automatically exercise your options whether they are long ...
2 votes
Accepted

When does stock options start expiring on Monday and Wednesday?

From the CBOE: In 2016 Cboe began to offer SPXW Weeklys with Monday and Wednesday expirations, in addition to the existing SPXW Weeklys with Friday expirations (SPXW EOW).
  • 117k
2 votes

American Options Trading- Brokerage Entered Do Not Exercise Instead of Selling My Contracts Before Expiration

When there is insufficient cash to support an assignment, some brokers close out ITM options around 3:30 PM on expiration day. That seems reasonable given the circumstances. It troubles me that a ...
1 vote
Accepted

Can both call and put option of the same strike price and same asset expire to zero on expiry date?

If the price of oil* settles at 1,000 on the day of expiry, then both puts and calls with a strike of 1,000 will have zero value (though either could also be exercised). That is the only scenario - if ...
  • 117k
1 vote

Can any European-style options be exercised before expiration?

Another CME page clears it up: European Style Options: can be exercised only at expiration. The majority of CME Group options on futures are European style and can be exercised only at expiration.
  • 3,511
1 vote

Swaps applied in futures contract?

No, and that's basically the definition of the difference between futures and spots: futures expire only a few times per year (say, monthly or every three months), whereas spots expire daily. If you ...
  • 6,007
1 vote

How to sell a worthless option

If your calls expire before the end of the year, just leave them be and they will expire. If they expire in the following year, you have a problem. Each day, you can try to sell them for a penny but ...
1 vote

Why would someone buy a way out-of-the-money call option that's expiring soon?

I agree that a buy to close is a likely explanation of what happened. The buyer was willing to forego a few cents worth of time value in order to close out a covered call and perhaps "roll" the call ...

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