I know options expire on Saturday have after-hour risk because OTM option may become ITM and get assigned on following Monday. What about weekly options? They expire on Friday but what time? If it's after after-hours, then I think they also have after-hour risk. Can someone clarify this?
Whether a monthly or weekly option, holders have until 430pm central to exercise their options (although different brokerages have different internal cutoff times). If the option is in the money, holders can file a do not exercise form up until this deadline as well.
Keep in mind the above is true for equity options. However, if you're trading weekly options on futures, this may not be the case; ES weekly options, for example, are exercised based on the VWAP of the last 30 seconds before the cash close, and cannot be abandoned or contra-exercised, so you know immediately if you will be assigned on them.
What if a Option Buyer buy's 500 Weekly Calls on Facebook December 14 Calls with a $50.00 Strike and never did exercise them? Hypothetical situation, you have a Trader who has 500 calls in the money by $3.00 and he dies at his desk, what happen's to all those Calls $3.32 in the money like Facebook hit on Friday? Will the Broker sell the position out are is this lost money to his estate?
Per the OCC's rules, any options that are at least .01 in the money based on the official settlement price of the underlying equity (as determined at 4:00 PM Eastern on the day of expiration) are automatically exercised, so there's nothing the account holder would have to do.