The objective is, if coffee trades higher over the next month but not above the 130 strike price, we'd collect the premium of the option we sold by
letting it expire worthless.
Once you own options, there are three methods that can be used to make a profit or avoid loss: exercise them, offset them with other options, or
let them expire worthless.
We were eventually able to
let them expire worthless.
Being more than $ 9 out of the money, I opted to leave them in place and
let them expire worthless.
Not exact matches
I've known that for a while and was
letting the $ 50 strike calls sit and
expire worthless later.
Had the stock not risen above the $ 31 per share price, you would have
let the option
expire worthless, and you would have limited your risk to only $ 100.
The buyer
let the call
expire worthless.
That said, I am no longer interested in this stock and I will do all it takes to
let the put option
expire worthless.
The ratio spread I had on MDY was almost
worthless going into this coming Friday's expiration, so I decided to sell my long put for a $ 10 gain instead of
letting it
expire completely
worthless in a few days.
Trading Strategies Managing a Portfolio of Covered Calls As a covered call nears expiration, the option writer can
let his stock be called, allow the option to
expire worthless or chose to close his position.
As a covered call nears expiration, the option writer can
let his stock be called, allow the option to
expire worthless or chose to close his position.
But before I discuss writing options on futures,
let me first elaborate on the first «old saying» that 80 % of options on futures
expire worthless.