In our financial market investments, we will come into contact with options as a product. So what if the options we're making now expire?What do we do with options when they expire?Option Exercise: If the option is in a favorable state, the investor can choose to exercise the option, that is, to buy or sell the underlying asset according to the agreed **. In this way, the rights of the option contract can be realized, and the exercise of the option is cash delivery or physical delivery.
Waiver of Exercise: If the option expires that is not cost-effective or does not meet the investor's expectations, the investor may choose to forfeit the exercise. Method exercise means that the option contract has no value and is reset to zero by default.
Closing Positions: Investors can choose to close the position before the option expires, sell the option contract, take profit or stop loss in time, and close the position only when the option is still valuable.
On the expiration date of the option, if the option is in-the-money, the option buyer can initiate an exercise declaration, and in order to ensure the successful exercise, the following points should be noted:
1. The exercise time is 00 15:30 on the exercise date
2. If you are the buyer of a call option, ensure that you hold the corresponding amount of cash in the contract unit to be declared in your account when initiating the exercise declaration in order to successfully exercise the option.
3. If you are the buyer of a put option, ensure that you hold the underlying ** of the total number of contract units to be declared in your account when initiating the exercise declaration, so that you can successfully exercise the option.
Options are traded from 9:15 a.m. to 11:30 a.m13:00-15:00 p.mAmong them, 9:15-9:25 a.m. is the opening call auction time, and the last three minutes will end randomly. 9：30-11：30.13:00-15:00 is the continuous bidding time.
The last trading day of the option, which is the exercise date, has no change in trading hours. The exercise time is 9:15-11:30 a.m. (where the call auction ends randomly -9:30 and no exercise orders are accepted) and 13:00-15:30 p.m
By diversifying your portfolio across different assets and strategies, you can reduce your risk. This helps to balance out potential losses and maintain stable returns when the market is volatile. Make sure your portfolio is diversified, including different options contracts, different expiration dates and exercises**.
Options trading requires patience and a calm mindset. Market volatility is normal, don't lose your cool because of momentary fluctuations. Wait for the right moment to make a move, rather than trading in the market frequently. At the same time, don't let the hype or the opinions of others sway your own decisions. Trust your own analysis and judgment and stick to your trading plan.
Options trading is a continuous learning process. The market is dynamic, and you need to constantly update your knowledge and skills to adapt to changes in the market. Improve your trading skills and awareness by reading relevant books, attending training courses, or seeking professional guidance. At the same time, reflect on your trading behavior and learn lessons so that you can do better in future trading.
1. Call options: Call options are one of the most popular trading strategies since the launch of listed options. Before learning more complex call and put strategies, the average investor should first thoroughly understand some of the basics about ** and holding call options.
2. Put options: Long put options are an ideal tool for investors who want to profit from the underlying market. Before understanding more complex put strategies, investors should first thoroughly understand the basics of holding put options.
3. Paired put option: An investor can establish a "paired put option" position by purchasing a put option and buying the same number of shares of the underlying ** at the same time. This is a hedging strategy.
If it helps you, we wish you a happy life.