When is the lastest options can be exercised

Discussion in 'Options' started by jsor, Apr 15, 2004.

  1. jsor

    jsor

    The question in the subject is not related to when I, as a retail customer, can exercise options, but how long market markets/exchange members etc. can wait before deciding to exercise options.

    Lets say I have some options that is slightly in the money as trading stop on expiring day. I expect these options to be exercise and on that ground I might have been taking other positions (e.g. covering with a position in the underlying). My question is if I have a risk of news coming out after trading stop, that will cause the counterparty not to exercise? Or did he have to decide before trading stop (even if he is a market markets/exchange members etc.)