Is there tail risk owning worthless options

Discussion in 'Options' started by optionsgambler, Mar 20, 2022.

  1. qwerty11

    qwerty11

    yes
     
    #11     Mar 20, 2022
  2. Probably sound like an idiot, but can you elaborate what happened here on close?
     
    #12     Mar 20, 2022
  3. JamesJ

    JamesJ

    I wonder about that too.. why haven't there been more sellers with this high closing indication...
     
    #13     Mar 20, 2022
  4. taowave

    taowave

    I buy short options back at expiry if they are within 1 percent(apx) of the stock price..

    Imho,paying .01 is a no brainer
     
    #14     Mar 20, 2022
    zdreg likes this.
  5. GotherL

    GotherL

    Pulled off google:

    “Marking The Close” is a technique of purchasing a security at the very end of the trading day — often within minutes of the close of trading — at a significantly higher price than the security’s current traded price. The purpose is to raise the security’s closing price, thus making it appear to be of higher value than it actually is. The manipulation of a transaction in order to give a false, misleading or artificial appearance of activity in a stock improperly influences the market price and is illegal. Yet, some traders continue to engage in such practice —and pay the price.
     
    #15     Mar 20, 2022
    Gambit and optionsgambler like this.
  6. I guess my fear is I'll be long a fuck ton of options, someone marks the close, then I get fucked (exercised well above true price)
     
    #16     Mar 20, 2022
  7. Im honestly convinced MMs are all short options and mark the close on them lower at 4:15 and artificially crush there price from 4-4:15 for spy options
     
    #17     Mar 20, 2022
  8. taowave

    taowave

    You do realize if they gun the stock after the close,you can sell stock and instruct your broker to exercise the call or choose not to exercise..

    Auto exercise is not based on after hours close..You have to instruct the broker to exercise is an after hours run up..

    You are worried about something that you should be praying for

     
    #18     Mar 20, 2022
    deltaf0rce, Gambit and optionsgambler like this.
  9. newwurldmn

    newwurldmn

    It’s literally a free option.
     
    #19     Mar 20, 2022