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When does an option in the money expire for cryptocurrency trading?

avatarMichael KalogeropoulosDec 26, 2021 · 3 years ago3 answers

Can you explain when an option in the money expires for cryptocurrency trading? What factors determine the expiration date and how does it affect the options trader?

When does an option in the money expire for cryptocurrency trading?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    When an option is in the money, it means that the strike price of the option is favorable compared to the current market price of the underlying cryptocurrency. The expiration date of an option is the date on which the option contract becomes invalid and cannot be exercised anymore. For cryptocurrency trading, the expiration date of an option is determined by the exchange where the option is traded. Different exchanges may have different expiration dates for options. It is important for options traders to be aware of the expiration date as it affects the value and potential profitability of the option.
  • avatarDec 26, 2021 · 3 years ago
    An option in the money expires on the expiration date set by the exchange. The expiration date is usually specified in the option contract. It is important for options traders to keep track of the expiration date as it determines the time frame within which they can exercise the option. If an option expires in the money, the options trader can choose to exercise the option and buy or sell the underlying cryptocurrency at the predetermined strike price. However, if the option expires out of the money, it becomes worthless and the options trader loses the premium paid for the option.
  • avatarDec 26, 2021 · 3 years ago
    When an option is in the money, it expires on the expiration date specified by the exchange. For example, on BYDFi, options in the money expire at 8:00 PM UTC on the expiration date. It is important for options traders to be aware of the expiration time as it determines when they need to make a decision on whether to exercise the option or let it expire. The expiration time can vary depending on the exchange and the specific option contract. Options traders should always check the expiration date and time before trading options to avoid any confusion or missed opportunities.