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In response to
"ELI5 -- nm"
by
ty97
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When an option expires you have to make the choice to exercise it or let it expire worthless
Posted by
Reagen
Jan 28 '21, 05:36
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some are worthless in and of themselves (i.e. an option to sell at 100 tomorrow is worthless).
*Every single call option* on the market for tomorrow (i.e. to buy at a given price) is currently "in the money" - less than the current price. So someone has an option to buy a certain number of shares GME at $100, for instance. When they execute, shares actually have to change hands and this could trigger a cascade of buying and selling. What that actually looks like is anyone's guess.
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