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The expiration date is the day when the option expires. After expiration, the option no longer exists. Holder. The holder of an option is the buyer and has the ability to exercise the option or not.
For instance, on the day before an ex-dividend date, it may make sense to exercise an equity call option early in order to collect the dividend. In general, equity call options should only be exercised early on the day before an ex-dividend date, and then only for deep in-the-money options. For an American-style put option, early exercise is a ...
In finance, the expiration date of an option contract (represented by Greek letter tau, τ) is the last date on which the holder of the option may exercise it according to its terms. [1] In the case of options with "automatic exercise", the net value of the option is credited to the long and debited to the short position holders.
An options chain provides a range of summary information about a specific option expiration in a table, allowing the trader to quickly glance at vital data about these options.
The options trader makes a profit of $200, or the $400 option value (100 shares * 1 contract * $4 value at expiration) minus the $200 premium paid for the call.
In this market, the last available price of the underlier, which is used to determine whether an option is automatically exercised, is the price of the regular-hours trade reported last to the Options Clearing Corporation at or before 4:01:30 pm ET on the Friday before expiration. This trade will have occurred during normal hours, i.e. before 4 ...
A compound option is an option on another option, and as such presents the holder with two separate exercise dates and decisions. If the first exercise date arrives and the 'inner' option's market price is below the agreed strike the first option will be exercised (European style), giving the holder a further option at final maturity.
Normal trading hours for these options are from 9:30 a.m. to 4:15 p.m. Eastern. However, it also has global trading hours which last from 8:15 p.m. Eastern to 9:25 a.m. Eastern the following day ...