What percentage of in the money call options get exercised?

Discussion in 'Options' started by toben, May 22, 2007.

  1. Long option is just the same as buying an option.
     
    #11     May 22, 2007
  2. opt789

    opt789

    Stock options that expire in the money by 5 cents are automatically exercised. They do this so there is no "forgetting".
     
    #12     May 22, 2007
  3. opt789

    opt789

    Forex, I don't know if you are not really reading the questions but your answers are wrong. If a Call is not exercised then nothing happens. A contract that expires without exercise does not result in any stock changing hands.
     
    #13     May 22, 2007
  4. If the calls are ITM then the holder of the calls WILL get 100 shares per contract on Monday.
     
    #14     May 22, 2007
  5. opt789

    opt789

    Of course, but the question asked what happens if the calls are NOT exercised, say if they are only in the money by 4 cents.
     
    #15     May 22, 2007
  6. Where did the original poster mention ITM by 4 cents?
     
    #16     May 22, 2007
  7. opt789

    opt789

    OK last post on the subject then you can go back to gambling on SBUX calls. The original poster was apparently unaware of automatic exercise of options that are in the money by predetermined amounts. So he asked "Who gets the shares on the cheap when someone doesn't exercise them?" to which you replied "holder of the long calls." If the calls are not exercised, as per his question, then how exactly does you answer make sense? Not exercised means not exercised. By the way, the word "say" in my post basically means "for example" which thereby implies my proffering a notion not someone else.
     
    #17     May 22, 2007
  8. You should study how options work and automatic exercise rules before buying SBUX calls or commenting here :D

     
    #18     May 22, 2007
  9. opt789....I think we are reading his question differently.

    I believe he is referring to "not exercised" as in not exercised by the holder of calls that are more than $0.05 ITM. And you are reading "not exercised" as in not exercised of calls that are ITM by less than $0.05.
     
    #19     May 22, 2007
  10. Automatic exercise rules won't affect the SBUX trade
     
    #20     May 22, 2007