Last Friday, on expiration day, we had one of the greatest nightmares for options buyers come to fruition.
The primary reason is that the probability of an option being out of the money on expiration day (Prob OTM in the graphic above) is 58% in this example.
There are other ways to use Delta, for instance, you can use the delta as a thumbnail probability as to the option being in the money on expiration day.
In fact, this pin is more like rolling a gutter ball, as it refers to a situation in which a stock closes at a strike price on expiration day.
One footnote on both of these dates and with all of these trades: The filing refers to all puts as European, so they can only be assigned or exercised on Expiration Day, and all calls as American.
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The best case scenario is for the stock to slowly rally and to close at 33 on March expiration.
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It is not yet known whether the threat to disclose tax return information is a real threat, but I suppose we will all know on the expiration date of September 28th.
Italy argues that because the case is now the subject of international maritime law, it has been decided that the pair will not return to India "on the expiration of the permission granted to them".
Italy argues that because the case is now the subject of international maritime law, it had been decided that the pair would not return to India "on the expiration of the permission granted to them".
Shortly thereafter, pundits focused on lockup expiration, and the potential effects of employee and investor stock that had been locked up by the IPO now free to trade. 800M shares were locked up until the beginning of November, and a total 1.3B shares were unlocked and free to trade.
Wynn Resorts, Ltd. is scheduled to report first-quarter earnings after the closing bell on April 28, 2011, well past the expiration on April contract options.
Call buyers tackling weekly options on Goldman may profit if the stock extends gains through expiration on Friday.
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With most major U.S. pharmaceutical companies facing patent expiration on blockbuster drugs, earnings expectations for the group have remained modest.
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The implied three-month yield on March 2012 expiration euribor fell to 1.59%.
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The ruling means that Lilly will face a patent expiration on Prozac by August 2001, more than two years earlier than it expected.
When Deutsche Bank determined the market price on the option expiration it had as much as three cents of play in the pricing.
Agencies replacing software to meet core financial system requirements are required to use the GSA FMSS Multiple Award Schedule until its expiration on September 30, 1999.
Alternatively, investors may be engaging other strategies such as covered call selling, or outright call selling ahead of expiration on the view that the options will expire worthless or nearly worthless on Friday as time erosion accelerates.
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With higher tax rates on the horizon (the expiration of the Bush tax cuts on Jan. 1, 2011 and the 3.8% Medicare tax on high-income earners on Jan. 1, 2013), now is good time to evaluate conversion options.
In case insurers did not get this hint, Congress also imposed an expiration date on these policies.
Gero noted gold prices did not fall on Friday following options expiration, which has been the case normally.
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One solution that Rosen presents is destroying data: setting expiration dates on pieces of information so that it disappears.
Gideon Gono, head of the central bank, created massive amounts of Zimbabwean dollars and placed expiration dates on the notes.
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The first cop (Takeshi Kaneshiro) ponders the expiration dates on cans of pineapple, asking if love has a past-due date, too.
Also, Fertik says you can put expiration dates on photos and messages (a service also offered by German company X-pire).
Another idea, which I have although I am sure it will not turn out to be original, might be to put an expiration date on currency.
The economy is approaching a so-called "fiscal cliff" brought on by the looming expiration of several tax cuts as well as the approach of a series of mandatory spending cuts.
Although there may be an expiration date on your coupon, your local laws most likely state that you can always redeem it for the amount you initially paid at regular price.
With the expiration looming on an emergency Securities and Exchange Commission order banning short-selling in hundreds of financial company stocks, exchanges are working toward a permanent solution that would involve all stocks.
Moreover, since the first Friday of the month was on April 1, expiration week is upon us already, and trading will also be impacted by the expiration of equity and index options.
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