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What Happens When Options Expire (Yiddish)

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Chaim Ekstein | Git Gelt Podcast avatar
Chaim Ekstein | Git Gelt Podcast

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So expiration date. So Especially in the money versus out of the money options trading involved a gross grosser level of risk and most people trading options options thousand% thousand thousand million% statist IC with regions address please comment in the comment section and without further ado expiration was done when the option expired. So the option deadline deadline expiration date is the option by the expiration date. This is out of the money or this is in the money. is in the money. Out of the money out of the money of the money out of the money. out of the money bite. Basically a call option mind as the strike price is price. So out of the money be my guest. The market is out of the money strike price zero is out of the money option. The stock prices put option dollar in the money. So put in the Zelda numbers. Stock price strike price end is in the money. of dollar. But a call in the dollar stock price of strike price is out of the money is out of the money zero is in the money. So basically the value of this option then expire example. stock and the co $95 $95. So the dollar yet is the call option in the money. Okay. In the money prices worthless dollar out of the money is done option good zero value. So meaning to say option. Okay. So that's the shares option in the money price. So when the stock price is yet options contract market. Assuming the market is whatever the market is, So basically assigned the shares. Stock prices. the broker short. Okay. Short stack mind. So closed down position expiration in the money exceptions options cash settled S&P option. So this is basically a option of the S&P 500 index. X option is by expiration. No concern automatically exercised the guys shares in accounting for an account call the option. And this can create a margin call. But anyway anyway the lesson of by expiration date option counter is in the money is out of the money any questions address in future lessons please comment and like subscribe and YouTube subscribe.com/black c h a i m e k s e i n.com/bim lessons of the options market