1 Answers: What happens when options expire worthless?

Question

Is this true?

When an option expires worthless, the seller pockets the premium (less the commission) and moves on to another opportunity. Since expiration means that option position is gone; the buyer then holds nothing and has lost the entire amount he paid for the option, plus commissions.

 

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Maria Garcia 8 months 1 Answer 78 views 0

Answer ( 1 )

  1. Yes this is true. It is not a good idea as you can see!

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