Option trading hours, stock extended trading hours, and exercise

Discussion in 'Options' started by TimeCorrosion, May 21, 2010.

  1. According to CBOE, the equity options stop trading at 3:00 PM EST on expiration Friday.


    Here is my question:

    If, for example, I have naked puts and they are OTM by 3:00PM on expiration Friday and options have stopped trading, and if the underlying continues to decline to a large amount below the strike during the extended stock trading hours (so the original puts would have become deep ITM if still trading), and if somebody declare his or her intention to exercise by 5:00PM EST to the brokerage house (or whatever the final minute or second it is to declare intention to exercise), will I get exercised?

  2. heech


    I believe the answer is "yes".

    I've definitely had OTM commodity future options exercised on me. And I don't see anything on the CBOE site that would indicate someone *can't* exercise an OTM option if they so choose. So, if they were able to get a better price in the after market that makes your option ITM... they have the ability to lock that in.
  3. moonmist


    Big payers can exercise their equity options tomorrow morning (Saturday). This has been discussed several times on this message board.

    Small guys like us need to wait until Sunday or Monday morning to know the final outcome.....
  4. MTE


    Yes, you can get assigned. Just because an option is OTM based on the closing stock price doesn't mean that you won't get exercised, so the only way to be sure is to close out the option positions before the close.
  5. anyone know of a broker that allows exercise for retail traders beyond the time that IB allows (15:30EST)?
  6. Well, the extended trading hours end at 8:00PM EST. So, after 8PM EST, we will know if the options will be exercised or not; we don't have to wait till Monday, do we?