Expiration is the last day that the option contract is valid. On or before the expiration date, market participants must decide what to do with their expiring position.
- Options expire at 4 pm EST on the expiration date. Settlement runs at 5 pm EST.
- Options on FTX US Derivatives are European-style, meaning the buyer can only exercise the option at expiration.
- Options are physically-settled and there is no settlement index, meaning FTX US Derivatives will not determine if your options are in-the-money or out-the-money at settlement.
- FTX US Derivatives does not automatically exercise in the money options.
- There is a long holder & short holder in every position. Each holder has the option to do the following as described below.
Before an option expires, option owners who are long (buyer) can choose to…
- Exercise the option - The option buyer has until 5 pm EST on expiration to submit exercise instructions on the platform under Balances & History > Exercise Instructions*
- Close their position to realize their profit or loss - see steps to Sell to Close a Long position
- Let the contract expire worthless - see what happens if I don't exercise my long options
*If sufficient collateral is not on deposit at FTX US Derivatives, the exercise instructions will not be accepted. There is no auto-exercise. To submit exercise instructions
- Long Calls need USD = (Strike Price X # of contracts) on the platform
- Long Puts need BTC/ETH on the platform
Before an option expires, option owners who are short (seller) can choose to…
- Take no action and possibly be assigned on the contracts
- Close their position to realize their profit or loss -see steps to Buy to Close a Short Position
- If you do not close the position, the options will either expire worthless or if in the money, you would possibly be assigned on the contracts.
Note: You are not required to post short collateral when selling to close a position.
The positions tab on the dashboard shows your current positions > the position history shows both current and expired positions.
Expired Positions will be displayed under Balances and History>Position History