Expiration of Options Explained: Options Trading Concepts

[@nntytuu]

Okay Mike with the intro! 🙏🏿

[@otmanalami6621]

Please Do I need cash to fund my account if I buy QQQ ETF Put option and i don't close it till it reaches the settlement day?

[@AS-bm6vs]

what also be the case if my long call expired ITM and i have no enough money in my account to exercise ? what also be the case if my long put expired ITM and i have no shares to exercise ? what would a broker do in both cases ?

[@tastyliveshow]

You would be exercised regardless and you'd have shares on Monday with a negative buying power, unless the risk team was keen enough to close you out prior to expiration - the solution is simple - close the contract prior to expiration if you don't want to deal with the shares or the assignment fee.

[@silentwraith3464]

Link to gamma risk video?

[@tastyliveshow]

kzbin.info/www/bejne/gJzKlGmkmK6rbdE

[@VigneshDhakshinamoorthy]

So LONG = Buy and SHORT = Sell, is that correct usage/understanding?

[@tastyliveshow]

That's correct! Long could also be directional slang for bullish, and short for bearish, but technically speaking when we say we are long we own something, and short we sold something.

[@VigneshDhakshinamoorthy]

tastytrade thank you, I just noticed I asked this a month back. I have watched several more hours of your content since then and these terminology makes a lot more sense now. Thanks for the enlightenment!!! 😁

[@benjuliebenjulie7414]

Is it true that I need to inform my brokerage house if I want my purchased put or call to be executed at expiration?

[@bensmith6987]

Too much theory.