How Does the Transfer of an Options NFT Affect the Original Counterparty’s Obligation?

The transfer of the options NFT simply transfers the rights of the holder (the long position) to a new wallet address. The original counterparty (the short position) is unaffected because their obligation is not to a specific wallet, but to the options smart contract itself.

The contract holds the collateral and manages the terms, ensuring the obligation remains intact regardless of who holds the NFT.