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Friday, November 26, 2021

Expired Options (November 2021)

I try to post an article shortly after options expiration in which I report on expired options and any actions I took in the week leading up to options expiration. 

I missed doing so in October, choosing to cover October's expired options in my Options Update of September and October.

This article covers the options that were scheduled to expire on 19 November. 

When options expire, the obligations I have related to those options disappear. 

For puts, the margin set aside as collateral gets released, and the possibility of having to buy shares disappears. Likewise, for covered calls, the possibility that my shares will be called away disappears. I consider the options income associated with expired options to be secured

Sometimes, an option is at-the-money or even in-the-money, and, consequently, the risk of assignment is high. To avoid assignment, I'd need to either close the option or roll forward the option to a later expiration date. 

Expired Options

#7112021-09-17:-1×NKE 19 Nov 2021 $135.00 P $       160.00 ( $          -0.75 )
#7002021-08-19:-2×PFE 19 Nov 2021 $45.00 P $       264.00 ( $          -0.67 )
#6962021-08-19:-1×DHI 19 Nov 2021 $80.00 P $       216.00 ( $          -1.06 )
#6952021-08-19:-2×AEP 19 Nov 2021 $80.00 P $       140.00 ( $          -0.19 )
#6942021-08-19:-1×ACN 19 Nov 2021 $275.00 P $       310.00 ( $          -0.31 )
#6922021-06-25:-1×PG 17 Sep 2021 $130.00 P $       285.00 ( $          -0.71 )
#6812021-06-16:-1×HSY 19 Nov 2021 $155.00 P $       230.00 ( $          -0.31 )

NIKE (NKE) closed at $174.88 per share on options expiration day, about 30% above the $135 put option I'd sold. As a result, the option expired and I secured about $159 in options income. 

Today, NKE is trading for about $172 per share.

Pfizer (PFE) closed at $50.80 per share on options expiration day, about 13% above the $45 put options I'd sold. As a result, the options expired and I secured about $263 in options income. 

PFE is trading at around $51 per share. 

D.R. Horton (DHI) closed at $101.09 per share on options expiration day, about 26% above the $80 put option I'd sold. As a result, the option expired and I secured about $215 in options income. 

DHI is trading for about $101 per share. 

American Electric Power Company (AEP) closed at $83.38 per share on options expiration day, about 4% above the $80 put options I'd sold. As a result, the options expired and I secured about $140 in options income. 

AEP is trading for about $84 per share. 

Accenture (ACN) closed at $369.79 per share on options expiration day, about 34% above the $275 put option I'd sold. As a result, the option expired and I secured about $310 in options income. 

ACN is trading for about $362 per share. 

Procter & Gamble (PG) closed at $146.82 per share on options expiration day, about 13% above the $130 put option I'd sold. As a result, the option expired and I secured about $284 in options income. 

Today’s, PG is trading at around $149 per share. 

Hershey (HSY) closed at $179.33 per share on options expiration day, about 16% above the $155 put option I'd sold. As a result, the option expired and I secured about $230 in options income. 

Today’s, HSY is trading at around $181 per share. 

As a result of these expirations, I secured options income totaling about $1,601. 

Summary


All the options that were scheduled to expire on 19 November, expired out of the money. As a result, I secured about $1,601 in options income and no longer would be obliged to buy shares of the underlying stock. 


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