Option ITM at 3:00 on Friday. Trades OTM after hours. Do you get exercised?

Discussion in 'Options' started by IronFist, Mar 19, 2021.

  1. I sold a put. It's ITM. If it trades OTM after hours will it get exercised?
     
  2. ET180

    ET180

    Possibly no depending on how liquid the underlying is after hours. Here's an example. Say I am long a stock and I have a put. I was planning to use the put to get rid of the stock at the put's strike price. Now the stock trades higher than the strike after hours. So why wouldn't I just sell the stock at a better price in the after market and simply not exercise the put?
     
    Last edited: Mar 19, 2021
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