Expiration Week

Now that option expiration week is over, I would like to see what has happened to some of the contracts that I have examined in the past few posts. They have all expired at the close of trading yesterday. This is Microsoft stock price in the past two weeks. It closed at $26.41:


MSQ-AR was the in-the-money call with strike at $24.5. It expired in the money at $1.91 = $26.41-$24.5, that is the intrinsic value of the contract:


MSQ-AJ was the in-the-money call with strike at $25. The intrinsic value is $26.41-$25=$1.41 and the final price of this contract at expiration was $1.4:


MSQ-AY was an out-of-the-money call with strike at $27.5. It had no intrinsic value and it expired at $0.05:


And what about put contracts? Microsoft went down on expiration day.
MSQ-MY was the in-the-money put with strike at $27.5. It's intrinsic value was $1.09 and it expired at $0.95:


MSQ-MS was the in-the-money put striking at $27. With intrinsic value at $0.59 it expired at $0.65:


Finally, MSQ-MJ was the out-of-the-money put striking at $25. With no intrinsic value it expired at $0.05:



One could take note that an option can still move a lot on expiration day. MSQ-MS had a 700% gain within Friday.


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