What Happens If an Option Expires In the Money
If an option expires in the money by at least $0.01, the OCC exercises it automatically. See what the long and short sides owe, and what pin risk costs.
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If an option expires in the money by at least $0.01, the OCC exercises it automatically. See what the long and short sides owe, and what pin risk costs.
American options can be exercised on any trading day, European options only at expiration. How SPY and SPX differ, and when early exercise matters.