All my options expire worthless.... mainly because I close the ones with premium be they long or short well before then as do many people.
From the OIC (Options Indusstry Council): EXERCISE THRESHOLDS The Options Clearing Corporation ("OCC") uses the 5 cent threshold for customer orders, but your firm may have a different threshold. Expiring options subject to exercise by exception use the following thresholds to trigger exercise: Equity options: .05 per contract in-the-money in the customer account; .05 per contract in-the-money in firm and market maker accounts. Index options: $.01 per contract in-the-money in all account types. http://www.888options.com/help/faq/exercise.jsp#6 Not disputing anything, I was just caught off-guard by a 62 cent ITM threshold. Back on the Floor the used a quarter point for auto exercise, things change. All the best, Don
There's no point of reference so looking at a whole book of contracts trading around the strike, it'll be about 50% above and 50% below. Depending on who opened what positions it'll be around 50%. But that's meaningless. The OP is misquoting the question about what % of OTM contracts expire worthless (gain no intrinsic value).
Read the book it explains alot..... http://www.amazon.com/Complete-Guid...bs_sr_1?ie=UTF8&s=books&qid=1197598426&sr=1-1