What happens if a call option on a cryptocurrency expires out of the money?

7 answers

• Adam JohnstoneFeb 15, 2021 · 4 years ago
  When a call option on a cryptocurrency expires out of the money, it means that the market price of the cryptocurrency is below the strike price of the option. In this case, the option holder does not exercise the option as it would not be profitable. The option holder loses the premium paid for the option, which is the maximum potential loss. On the other hand, the option seller keeps the premium received and does not have any further obligations.
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• rolnixNov 09, 2024 · 8 months ago
  If a call option on a cryptocurrency expires out of the money, it's like buying a ticket to a concert but not attending because the artist canceled the show. You lose the money you paid for the ticket, but you don't have to go to the concert. Similarly, the option holder loses the premium paid for the option, but they are not obligated to buy the cryptocurrency at the strike price.
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• Phomanan EamFeb 11, 2021 · 4 years ago
  When a call option on a cryptocurrency expires out of the money, the option holder does not exercise the option. This means they do not buy the cryptocurrency at the strike price. The option seller, on the other hand, keeps the premium received and does not have to sell the cryptocurrency. It's important to note that the outcome of an expired out of the money call option is different from an in the money or at the money option, where the option holder exercises the option.
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• jordipollardFeb 29, 2024 · a year ago
  If a call option on a cryptocurrency expires out of the money, it's like ordering a pizza but not picking it up because you changed your mind. You lose the money you paid for the pizza, but you don't have to eat it. Similarly, the option holder loses the premium paid for the option, but they are not obligated to buy the cryptocurrency at the strike price.
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• Joshua RoseDec 05, 2024 · 7 months ago
  When a call option on a cryptocurrency expires out of the money, the option holder does not exercise the option. This means they do not buy the cryptocurrency at the strike price. The option seller, on the other hand, keeps the premium received and does not have to sell the cryptocurrency. It's important to understand the risks involved in options trading and to carefully consider the market conditions before entering into any options contracts.
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• g.shiva9605Apr 27, 2021 · 4 years ago
  If a call option on a cryptocurrency expires out of the money, the option holder does not exercise the option. They simply let it expire worthless. The option seller keeps the premium received and does not have to sell the cryptocurrency. It's important to note that options trading involves risks and it's recommended to have a thorough understanding of options before trading them.
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• DustlotusJul 26, 2021 · 4 years ago
  When a call option on a cryptocurrency expires out of the money, the option holder does not exercise the option. They do not buy the cryptocurrency at the strike price. The option seller keeps the premium received and does not have to sell the cryptocurrency. It's important to remember that options trading involves risks and it's advisable to consult with a financial advisor before engaging in options trading.
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