Paper Money Option Trading
Good day. Like to seek guidance on Paper Money Options Trading
1) Will the premium reflected upon selling a put option stays throughout the tenure eg 30 days till expiry though it might fluctuate throughout and when upon expiry the strike price stays above the Underlying stock price and it expires worthless the correct understanding?
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Remoortel : hi you can check this : https://www.moomoo.com/sg/support/topic5_259?from_platform=4&lang=en-us&platform_langArea=sg&global_content=%7B%22promote_id%22%3A13643%2C%22sub_promote_id%22%3A14%7D
101832742OP : Hi Remoortel
Thanks for the useful guide.However don't think I able to locate the answer to my question regards to if the premium reflected upon selling the put option stays the same and I will be getting that amount upon expiry when the strike price is above the underlying stock price.
Upon expiry of the option how do I calculate my P/L
and I am not quite clear about the 3hrs before closing and if there are sufficient funds will it trigger a margin call and if its a secured put option with sufficient funds there will be no risk of margin call?
Moomoo Buddy : Dear client, the premium will be credited upon selling an option. When the price of a sell put option is above the Underlying stock price on the expiration date, the option is in-the-money. Generally speaking, in-the-money options are exercised when they expire. Please kindly note that in the real trading, as the option seller, whether and when the option is exercised still depends on the buyer. If you have any other question, please feel free to contact our live chat agents through the app via Me > Customer Service > Online Inquiry. If you prefer a phone conversation. Please call our Customer service hotline: (+65)-6321 8888 Service time: 24 hours (trading day) 09:30 - 21:30 SGT (holiday or weekend) Thank you and have a great day!
101832742OP : Hi Moomoo Buddy
Many thanks for the explanation.This is where I don't really get it is that when the option expires in the money(strike price above the underlying stock price) how and what do the seller of the option seller able to figure out if the buyer of the option wishes to exercise or not?
Appreciate for further guidance. Thanks
sheneika ray 101832742OP: $Invesco QQQ Trust (QQQ.US)$