Hello. Testing out selling options. For my 10/29 expiry can I not touch this and just let this expire?
From what I’ve seen, it’s best to buy it back right before expiration or before it runs up (if you think it will). The reason is because stocks can run after hours and people with expired options have until that evening (or sometimes until the next day, I read somewhere) to exercise the contracts. You don’t want to risk that for very little upside, since the expiring options should be close to worthless if they are not in the money by Friday near market close.
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Yes you can not touch this and let is expire, but if by Friday close AMC will be under 37, then you will keep the entire premium and will be assigned to buy 100 shares of AMC at 37. If you don’t want to buy 100 shares at 37 then you should buy back before Friday close.