In option trading, if the expired option fails to exercise its rights, the investor will lose all the royalties. Therefore, the option expiration date is a time point that option investors must pay attention to. As long as the specified time has passed, the option contracts will be invalid and no longer exist, and the expiration of the option will be regarded as giving up the exercise of power.

Taking the option buyer as an example, the closer to the expiration date of the contract, the more the time value of the option declines. When the expiration date approaches, the value of hypothetical options and value options held by option buyers will gradually go to zero, because their intrinsic value is already zero, so the time value will gradually drop to zero, so the obligee will lose all the royalties when the options expire.

Source: option sauce

Although we have always stressed that the buyer's rights are great, there is a time limit for this right. If the market fluctuation does not meet our expectations within the specified period, the position of the right party held by the buyer will lose all its value when it expires, which investors must pay attention to.

If there is a big deviation between the market and our forecast, stop the loss in time. Although we will lose some of the patent fees, we can recover the rest and avoid further losses.