What happen's when an option contract expires and I'm out of the money?

Question

What happen's when an option contract expires and I'm out of the money?

Answer 1

Nothing, as in it expires worthless.

Answer 2

When the option expires it is treated at a closing transaction for $0.00.

If you had purchased the option for $100.00, for tax purposes you would have realized a capital loss of $100.00. For the "date sold" on Schedule D (assuming you are a United States taxpayer) you would put in the expiration date.

If you had written the option for $150, for tax purposes you would have realized a short-term capital gain of $150.00. For the "purchase date" on Schedule D (assuming you are a United States taxpayer) you would put in the expiration date.

In either case the option will no longer appear in your account.

Answer 3

assuming you're long the option:

nothing.

you just don't see the options in your account anymore.

Answer 4

When your option expires, the contract then is gone, deleted, disappears.

You now have a tax loss, you bought a security, and there no longer is a market for it since it has expired (died, gone).

Answer 5

If your contract expires without being called or put (which ever the case) nothing happens whether you're in the money or out. However, obviously there are circumstances (depending if you've sold or bought put or call options) where being in the money would guarantee being called.

I'd me more than happy to explain based on your circumstance if you want to give more details on the option.