Viewing a single comment thread. View all comments

mpoozd t1_j29n034 wrote

$4 trillion worth of options expire on every OPEX fucking insane

73

MissingFucks t1_j2argp2 wrote

Value at time of expiration or at time of being bought? Whhy would anyone not execute options that have value at expiration?

10

SuperBottit t1_j2b3oo8 wrote

It's the same theoretically. The money just shifts from losers' pockets into the winners'

Many options can be closed out on both sides of the ledger so there's never actually anything to exercise. Contracts that are open and in the money almost always get exercised.

7

Dushenka t1_j2b3vy5 wrote

Eh, it's just the same 4 trillion going around in circles.

9