What happens when you hold your options into expiration on Tiger Platform?
Ever wondered what happened when you hold option trades into expiration on Tiger Platform?
I executed the following multi-legs option trade sometime in August on IWM & held it to expiration on 16th September 2022:
- Long 1 x 175 Put
- Short 2 x 185 Puts
- Long 1 x 188 Put
IWM closed at 178.99 at the end of last Friday’s (16th Sep) trading session.
So what happened subsequently?
On Sunday after 3pm, the option trades were settled in my Tiger account as follows:
- 1 x 175 Put - OTM & Expired worthless & closed.
- 2 x 185 Puts - ITM & I was assigned 200 shares at 185 each
- 1 x 188 Put - ITM & exercised on my behalf and resulted in short 100 shares at 188
Now you know.
A word of caution: It is almost always prudent to close option trades before expiration. However there are situations where it makes more sense to hold it into expiration and let the broker do the needful.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.