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No stupid questions — I’ll start

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  • #6474417

    What actually happens when an option I sold expires worthless? Like mechanically — does something happen in my account, or does it just… disappear?

    #6504431

    Great question — it just disappears. If the option expires out of the money, it expires worthless, the premium you collected is yours to keep, and there’s nothing to do. Your broker clears it out automatically. The only time you need to act is when it’s close to the money near expiration.

    #6474427

    Adding to that: this is why some of us love selling options — when you’re wrong slowly, time still pays you. When you’re wrong fast, well… that’s what the defined risk is for.

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