What happens if an options expires and I am in the money? for instance I sold Susser (SUSS) AUG 39.00 for $2.70 today after buying for $2.00 a few days ago. But what if I hadn't sold the contracts and the price keeps going up? Would I lose my money if I don't buy the 100 shares per, when the contract expires? I should probably have already known this before buying, huh? Thanks, for taking the time to answer a noob. I'd get you some coffee for sure if the opportunity arises. BTW, I'm also long on Guaranty Bank (GBNK). Just regular stock- I'm not sure if they even offer options, and I doubt I'd ever buy an options contract on a $2 stock even if there was- I at least have figured that much out. Check em out if you get a chance and tell me what you think?
If option is in the money and you're long it, you (or your broker) will exercise it and buy (call) or sell (put) shares at the strike price. If you're short that option, then you will be forced to sell (call) or buy (put) the shares at the strike price. If a long option is in the money by more than .01 (or .05?) most brokers will auto-exercise unless you tell them otherwise.