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Author Topic: Clarification on automatic expiry of option?  (Read 3038 times)

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Offline locksleyTopic starter

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Clarification on automatic expiry of option?
« on: April 11, 2013, 12:40:40 PM »

Hi all,

I'm slightly confused by - "Last Friday in the month, midnight UTC are all *T options exercised automatically according to then current BTCUSD" :s


So if I have bought 1 newbielink:http://mpex.co/?mpsic=O.USD.P179T [nonactive], does this mean it will AUTOMATICALLY exercise that put option at $179USD on the last Friday of this month?


I assumed that


1. The option holder has a right to choose whether to exercise the option or not.
2. After the last Friday in the month, the option would simply expire if not exercised.


Is this incorrect?


Thanks


Offline CoinBr

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Re: Clarification on automatic expiry of option?
« Reply #1 on: April 11, 2013, 01:06:42 PM »

Hi all,

I'm slightly confused by - "Last Friday in the month, midnight UTC are all *T options exercised automatically according to then current BTCUSD" :s


So if I have bought 1 O.USD.P179T, does this mean it will AUTOMATICALLY exercise that put option at $179USD on the last Friday of this month?


I assumed that


1. The option holder has a right to choose whether to exercise the option or not.
2. After the last Friday in the month, the option would simply expire if not exercised.


Is this incorrect?


Thanks

Both 1. and 2. are true. You can choose to exercise anytime until last Friday. If you don't do it, it will expire and gets exercised automatically.

Offline Key

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Re: Clarification on automatic expiry of option?
« Reply #2 on: August 22, 2017, 07:19:17 PM »
Would like to see this clarified.
Will the real Bitcoin please stand up, please stand up, please stand up


 

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