we if sell any otm option of any stock thinking that it will became zero by expiry but the stike does not have any buyers to but the option then what will happen by expiry
1)do i still get the prenuim amount
2)my money get returned back that i have sold
@ShubhS9 can you answer or tag anyone who can answer it please
The buyer is/was already there when you sold the option, if there was no buyer on the order end, you would not have been able to take the short position in the first place. So it doesn’t matter whether there are no buyers or sellers upon expiry, you’re not squaring-off your position. As its OTM, it will expire worthless and as an option seller, you will get to keep the entire premium received.