That's weird. You can usually sell some of the contracts to fund exercising at least one. From there, you can fund everything. Maybe it was someone new to it?
Whoever buys the options needs to exercise them or they lose money. Market makers will buy options at expiration and exercise them. If someone truly did not want to benefit from their options they would keep them and tell their broker not to exercise them, because most brokers will exercise in the money options at close.
Puts are also automatically exercised. Your broker buys the stock for you and sells it to fulfill the contract. If you don’t have enough maintenance margin in the account, the broker may close your other position to cover it, or require you to deposit funds or charge you some sort of fee. Options and futures that close in the money are always automatically exercised, search it up. That’s one reason you never want to hold future to expiration, you will be required to take delivery of the oil or whatever the commodity is. Well some futures are cash settled. Oil is not.
This is amazing.
Some of the options on the airlines were never excersized
Meaning someone who made millions, decided to not cash in on them.
Not all. But a massive amount. Which is scary to think about
That's weird. You can usually sell some of the contracts to fund exercising at least one. From there, you can fund everything. Maybe it was someone new to it?
Bernard "Buzzy" Krongard was behind the majority of the put options before 9/11.
Options hardly get exercised. They just sell the options as is.
Whoever buys the options needs to exercise them or they lose money. Market makers will buy options at expiration and exercise them. If someone truly did not want to benefit from their options they would keep them and tell their broker not to exercise them, because most brokers will exercise in the money options at close.
You don’t automatically exercise out options though. That would mean the buyer would be short the stock he doesn’t own from buying a put.
Puts are also automatically exercised. Your broker buys the stock for you and sells it to fulfill the contract. If you don’t have enough maintenance margin in the account, the broker may close your other position to cover it, or require you to deposit funds or charge you some sort of fee. Options and futures that close in the money are always automatically exercised, search it up. That’s one reason you never want to hold future to expiration, you will be required to take delivery of the oil or whatever the commodity is. Well some futures are cash settled. Oil is not.
You are correct. However you are also Wrong.
When someone closes out an option. They purchase the opposite option. And square up the difference, hopefully Making a Profit. Or Closing a Loss.
So if they Bought a Call . They close it by sellington the same Call . If they sold a call. They close it by buying a call.
Before 9/11 the options were " in the money" and the person never turned it into a Profit. And It was mostly anonymous.
Regardless of whatever me or you think happened.
Someone either got caught. Got scared, was murdered, or something else.
But the volume for the 9/11 PUT options were there. And there was alot of them