What happens when a short in the money put expires?

Discussion in 'Options' started by spinn, Jan 16, 2023.

  1. atrp2biz

    atrp2biz

    I’ve learned to not let any options expire (long or short).

    March 18, 2022: I was short SHOP calls (S=760) that were way OOM with SHOP closing at expiry at $695. I check my account Saturday morning shocked to see I was assigned on those calls. There had been a weird print of $780 (don’t remember if it was RTH or AH). I closed my short stock Monday morning at ~$700 for a gain of $6000 per contract.

    This was a gift. If I was long the calls (with auto exercise on), I would have been seriously pissed.

    My personal lesson: Just close out option positions and don’t let options expire because weird shit can happen at expiry.
     
    Last edited: Jan 22, 2023
    #11     Jan 22, 2023
  2. status1

    status1

    I was not complicating the issue I provided more information not just that the OP will have long shares
    Based on the fact that the OP was not clear on what happens at expiration when the option is ITM and he does not mind long shares I was speculating that perhaps the OP is a beginner and was also not familiar on how leveraged etf's work

    If this was a regular stock I would not have provided the extra information
    Here is a link to get some information on how leveraged etf's work and how they may not be a good investment over the long term
    https://www.thebalancemoney.com/leveraged-etfs-lose-money-357489
    Go long at your own risk just don't be surprised if you do not make money over the long term
     
    #12     Jan 22, 2023