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If the option ends up OTM it expires worthless. If it ends up ITM it delivers
the underlying futures contract. So you want to be real clear on expiration
dates especially, as in my case, when you come from the securities side of the
world with uniform expiration dates. Expiration dates in futures are different.
Ftiz@xxxxxxx wrote:
> OK gang, Please help me get REAL clear on this subject.
> I sell a futures option, either put or call, and the market moves in my
> direction.
> Do I ever have to buy the option back if the market keeps moving in my favor?
> Or is it possible that the option will expire worthless.
> What are the rules with futures options?
> Thanks in advance
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