What happens to options on expiration day in the world of cryptocurrency?

3 answers

• Truong Quang Minh FGW CTJan 20, 2024 · 2 years ago
  On the expiration day of options in the world of cryptocurrency, several things can happen. If the option is in the money, meaning the strike price is favorable compared to the current market price, the option will be automatically exercised. This means that the trader will buy or sell the underlying asset at the predetermined strike price. If the option is out of the money, it will expire worthless and the trader will lose the premium paid for the option. It's important for traders to carefully consider the expiration date and the potential outcomes before entering into options contracts.
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• Bohdan ShyiatyiAug 17, 2024 · a year ago
  When options expire in the world of cryptocurrency, it's like the final countdown. Traders eagerly wait to see if their options will make them a fortune or leave them empty-handed. If the option is in the money, it's like hitting the jackpot. The trader can exercise the option and make a profit. But if the option is out of the money, it's a total bummer. The option becomes worthless and the trader loses the premium. So, it's crucial to keep an eye on the expiration date and make informed decisions when trading options in the crypto world.
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• StudMMJan 07, 2025 · 10 months ago
  In the world of cryptocurrency, options on expiration day follow a similar process to traditional options. If the option is in the money, it will be automatically exercised, and the trader will either buy or sell the underlying asset at the predetermined strike price. If the option is out of the money, it will expire worthless. It's important to note that different cryptocurrency exchanges may have slightly different rules and procedures for options expiration, so it's always a good idea to familiarize yourself with the specific exchange's guidelines. At BYDFi, for example, options are settled in the underlying cryptocurrency, and traders can choose to exercise or let the option expire based on their trading strategy and market conditions.
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