Can someone explain how is this possible?? The premium are exactly where the straddle opened at 4$. I thought otm premiums should go to zero at expiration and the itm gets assigned. But why are we getting extrinsic value that too this much at expiry of the contract (Snap @ 4.30). Suppose i am holding 553 pe and even the after hour closed at 555 then why 553 puts shows extrinsic value? Shouldn't they be zero? Not even a strike has 0.01 value at expiry. Am i missing something? Also if i am holding 558 pe and the after hour closed at 558 so after assignment i thought i got to keep all extrinsic value and get assigned at 558 on spy shares. Can someone pls explain this concept. These options should be trading at price no other than 0 for otms right?? Even the ATM Straddle show (2.02+2.01) at expiry. Thank u 🙂
Posted by TradingBulls07