Shouldn't OTM call expire close to zero?

Sorry if this is a dumb question that was asked million times here. I have a short 420 APP call that is expiring today 6/6/25. As the market was nearing the close, I was expecting the call to loose most of it's value. However, it actually gained value. Is this "normal?" The only thing I can think of is that there's some news pending on the stock and I can still get assigned after hours(which is ok with me). Official close was $417.89 and it's trading 421.00 as I write this.

Any thoughts?

 

Options can be exercised up to 530 pm et (some brokers will have earlier cutoff times). They don't "expire" at the close of trading. There is a chance that APP will be added to the SP 500, so the premiums are high, even at the close of trading, as you have the additional 1.5 hours to take advantage of exercising.

 

Seems like a crazy premium to pay for 1.5 hours. How unusual is this? I don’t trade options that much so maybe I just didn’t pay attention.

 

FWIW: Does not look like a dumb question to me! I think your short call expired worthless, but that price would have me nervous. Unclear to me how you can be assigned after expiration, unless was ITM at the close. -- I see similar price movement and volume on that option via TOS near the close.

 

I explained in my post above.
His option didn't expire worthless. It was out of the money based on the closing price. This means that long holders would not have the call automatically exercised, but could choose to exercise manually up until 530pm et. If the stock is included in the S&P it could go up dramatically after hours causing these calls to be manually exercised, and the OP assigned.

 

Yes, premiums very high on the close here. You will generally only see this when there is potential market moving news coming out.

 

I may have learned something new today! @qlai , please post if you find you got assigned! @FSU thanks for the detail!

 

Something happend. APP down 6percent. Long holders who were hedged earned gamma in the post.

 

Edit: it wasn’t included. Market was pricing a gamma event.

if you sold the call naked you did well. If you had a buy write, not so much.

 

Yeah, they add on Friday. They weren't added so the stock sold off. If they'd been added it would have been a >4% dot shot.