What happens if options on a cryptocurrency expire in the money?

3 answers

• Dec 27, 2021 · 3 years ago
  When options on a cryptocurrency expire in the money, it means that the strike price of the option is lower than the current market price of the cryptocurrency. This is a favorable situation for the options holder as they can exercise the option and buy the cryptocurrency at a lower price than the market. This can result in profits for the options holder. In the market, the expiration of options in the money can lead to increased buying pressure as options holders exercise their options. This can potentially drive up the price of the cryptocurrency.
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• Dec 27, 2021 · 3 years ago
  If options on a cryptocurrency expire in the money, it means that the options holder has the right to buy the cryptocurrency at a lower price than the market. This can be a profitable opportunity for the options holder as they can buy the cryptocurrency at a discount. However, it's important to note that options holders are not obligated to exercise their options. They can choose to let the options expire if it's not profitable for them to exercise. In such cases, the options expire worthless.
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• Dec 27, 2021 · 3 years ago
  When options on a cryptocurrency expire in the money, the options holder has the right to buy the cryptocurrency at a predetermined price. This can be advantageous for the options holder as they can potentially profit from the price difference between the strike price and the market price. As for the market, the expiration of options in the money can lead to increased trading activity and volatility. Traders may take advantage of the price movement to enter or exit positions, which can impact the overall market sentiment.
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