It means that when the option contract expires, the buyer does not need to take the initiative to exercise. Under normal circumstances, real options will be exercised automatically.

Tips: According to the regulations of Shanghai Stock Exchange, brokers should provide investors with automatic exercise services, and the trigger conditions and exercise methods of automatic exercise are decided by brokers and customers through consultation. Real options have no rights after they expire. The biggest loss of no rights after the expiration of real options is the premium.

When the real option is not exercised after its expiration, it will not become invalid. If its exercise fails, the premium will be zero, which is also the biggest loss of real options. However, as we all know, the cost of purchasing real options is very high, and the contract price is at least 1000 yuan. If you can't exercise after the expiration, the loss will be greater.