For example, the exercise price of the put contract on Xiaoming's exercise date is 2.550, and the current price of the 50ETF is 2.5 16, then the put contract of 2.550 is the real value and can be delivered by exercise. At this time, as an option buyer, we have the right to sell the 50ETF fund with the current market value of 2.5 16 yuan at the price of 2.550 yuan.
What should I do when the option expires?
On the exercise date, the exercise shall conform to the time factor. Investors of stock options can operate in the form of software on the expiration dates of 9: 15-9:25, 9: 30-1:30, 13: 00- 15: 30.
If the investor is the buyer on the exercise date, cash should be prepared for the purchase, and if the investor is the seller, sufficient subject matter should be prepared for the exercise.
It should be noted that if the exercise value of the option may cause losses after expiration, in order to avoid this risk, you can close the position and stop the loss in advance, and pay attention to the influence of time value on the option. If we do not pay attention to the influence of time value, the contract value may be zero by the exercise date.