0007 Posted April 25, 2012 Share Posted April 25, 2012 Can anyone clarifies the following: A buyer buys a call option expiring within 2 months. The option keeps on going up and is well in the money. Let us assume the buyer does nothing when expiry times arrives. What happens next? Link to comment Share on other sites More sharing options...
wolverine Posted April 25, 2012 Share Posted April 25, 2012 Unless you have completed auto-exercise paperwork the option will expire (worthless). Link to comment Share on other sites More sharing options...
0007 Posted April 25, 2012 Author Share Posted April 25, 2012 Wolverine, many thanks Link to comment Share on other sites More sharing options...
arty Posted April 25, 2012 Share Posted April 25, 2012 an option confers the RIGHT, but not the OBLIGATION, to buy or sell at the strike price. Unless you explicitly exercise the right on (or, in the case of American-style options, before) expiry, the options will lapse and the seller will have received the premium for free. Link to comment Share on other sites More sharing options...
nipper Posted February 1, 2021 Share Posted February 1, 2021 One way to make a bit of pocket money (GET THE TRADE RIGHT) ... (THEN MONETISE) You will see he bought 50,000 shares at $14.8947 and 500 call options at 20 cents, that's twenty cents. You will also see that his portfolio is now worth $46,034,545.47. How do we know this? Because he just posted the screenshot of his portfolio on https://www.reddit.com/r/wallstreetbets/ Link to comment Share on other sites More sharing options...
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