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What happens when options expire on Robinhood?

avatarPavarot ChanokDec 26, 2021 · 3 years ago3 answers

Can you explain what happens when options expire on Robinhood? I'm new to trading options and I want to understand the process.

What happens when options expire on Robinhood?

3 answers

  • avatarDec 26, 2021 · 3 years ago
    When options expire on Robinhood, the contracts become worthless and are automatically exercised or assigned based on their intrinsic value. If you hold a call option and it expires in-the-money, Robinhood will automatically exercise the option and you'll either receive the shares or cash settlement. If you hold a put option and it expires in-the-money, Robinhood will automatically assign the option and you'll be obligated to buy the underlying shares at the strike price. It's important to note that if your options expire out-of-the-money, they will simply expire worthless and you won't receive any shares or cash.
  • avatarDec 26, 2021 · 3 years ago
    Options expiration on Robinhood can be a bit confusing, but here's the gist of it: if your options expire in-the-money, Robinhood will automatically exercise or assign them. This means you'll either receive the shares or be obligated to buy them at the strike price. On the other hand, if your options expire out-of-the-money, they will expire worthless and you won't receive anything. It's always a good idea to keep an eye on your options' expiration dates and take action accordingly.
  • avatarDec 26, 2021 · 3 years ago
    When options expire on Robinhood, the platform will handle the process for you. If your options are in-the-money, Robinhood will automatically exercise or assign them. This means you'll either receive the shares or be obligated to buy them. If your options are out-of-the-money, they will simply expire worthless. It's important to note that this process may vary slightly depending on the specific options contract and the underlying asset. If you have any specific questions about options expiration on Robinhood, it's best to reach out to their customer support for clarification.