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What happens if a long call option expires?

Long call options that are in the money by 0.01 or more on expiration will be automatically exercised by a broker, resulting in +100 shares of long stock. Alert! You Don't Have to Exercise! Long call and put options have the right, but not the obligation, to buy/sell stock at the strike price.

When is a call option out of the money?

A call option is out of the money when the strike price is higher than that of the underlying asset while a put option is out of the money when the strike price is lower than the price of the underlying asset. Traders must decide whether to sell, exercise, or let their options expire as they get closer to the expiration date.

What happens if an option contract expires?

When an option contract expires, there are three definitive possibilities. They can expire in the money, out of the money, and expire worthless. If your call option has a strike price that is below what the current market price is, you are “in the money.”

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