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Why Is It Important to Monitor OTM Options near Expiration?

A small price move can push the OTM option ITM, leading to automatic exercise.
Greeks.Live22.11.25

Why Is It Important to Monitor OTM Options near Expiration?

It is important to monitor OTM options near expiration because a small, sudden move in the underlying asset's price can quickly push the option ITM, leading to automatic exercise and a potential obligation for the seller or an unexpected profit for the buyer.

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