Decrease in Buying Power Early assignment may result in decreased buying power. Account Deficits Early assignment may also result in an account deficit if it causes you to use more buying power than you have available. If you have an account deficit and choose to exercise your long contract to increase your buying power, you may not be able to open new positions while your exercise is pending.

If exercising your long contract is sufficient to cover your account deficit, you should be able to open new positions once your exercise has been processed. Margin Calls Early assignment may also result in margin call if it causes your account value to fall below your margin maintenance.

If you have a margin call and choose to exercise your long contract to decrease your margin deficiency, your margin call may still persist while your exercise is pending. If exercising your long contract is sufficient to cover your margin deficiency, any margin calls should be lifted once your exercise is processed. Funds and shares from exercises are available immediately during market hours. If you exercise a position after market hours, your exercise will be queued and credited on the next trading day. If your option is exercised prior to the expiration date, or your option is exercised automatically by the OCC, a few things can happen, depending on the time.

If the exercise happens after PM ET, it will be queued, and the associated shares will remain pending until the exercise is cleared. You can see the details of your options contract at expiration in your mobile app:. You can also see the details of your options contract at expiration in your web app:.

The Best Solution - Balance!

One of the biggest risks of options trading is dividend risk. You can avoid this by closing your position before the end of the regular-hours trading session the night before the ex-date. The day before the ex-dividend our brokers may take action in your account to close any positions that have dividend risk. You can avoid this risk by closing your option before the market closes on the day before the ex-date.

We could possibly close out this position in order to help reduce the risk in your account.

This is only temporary and you can open new short call positions on, or after, the ex-dividend date. Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Robinhood Financial does not guarantee favorable investment outcomes and there is always the potential of losing money when you invest in securities, or other financial products.

The "Sweet Spot" Expiration Date When Selling Options (Part 2 of 3)

Investors should consider their investment objectives and risks carefully before investing. To learn more about the risks associated with options, please read the Characteristics and Risks of Standardized Options before you begin trading options. Examples contained in this article are for illustrative purposes only. Supporting documentation for any claims, if applicable, will be furnished upon request.

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Sweet Spot Expiration Date When Selling Options

Placing an Options Trade. Expiration, Exercise, and Assignment. Limit Order - Options. Stop Limit Order - Options. Options Collateral. General Questions. The value of any option near month starting is more because Premium and Time value is more and it decreases with the passage of time and finally it becomes zero near expiry date.

In case of Nifty Index Option, if nifty moves in a range then it's premium decrease rapidly in expiry week.

Better trade in Nifty future in expiry week. To trade in Index Options trader should know about Nifty trend first. Then only you can take any position in call or put option. Nifty trend and Bank nifty Trend is updated daily here for free. First Buy only call or put. On expiry day and next day dont do trading.

On expiry day, you may loss whole premium, because it will be ZERO till market closing if you miss the right trade. I would like to share my own strategy, strategy-nifty-expiry. And be careful after , because last 30 minutes may be very risky.

This is for only buying call and puts General. Hi Arun In the money style nifty options are best when expiry is near, simple reason behind this is Nifty options has the premium for time days left for expiry. Happy Trading.