Can an OTM Option Expire ITM? ⎊ Path

Can an OTM Option Expire ITM?

Yes, an Out-The-Money (OTM) option can expire In-The-Money (ITM). If the underlying asset's price moves favorably past the strike price before or at expiration, the option will expire ITM.

This is the goal of an OTM option buyer, who is speculating on a significant price move.

Does the Intrinsic Value of an Option Change before Expiration?

What Is the Term for an Option That Expires Worthless?

How Does a Longer Time to Expiration Increase the Chance of an OTM Option Expiring ITM?

Can a European Option Be Closed before Expiration?

Does Time Decay (Theta) Accelerate or Slow down the Delta’s Movement toward 1.0 as an Option Moves ITM?

Why Is Theta Decay Generally Non-Linear, Accelerating Closer to Expiration?

How Does Time to Expiration Influence the Extrinsic Value of an Option?

How Does the Concept of “Time-Locked” Transactions Relate to Front-Running Prevention?