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There's also no assure the brokerage firm can keep on to maintain that short position for an unlimited time period. So, for those who're a newbie, it's generally inadvisable to carry an options position into expiration if there's a chance you might turn out with a short stock position.
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2Describes an option with no intrinsic value. A call option is out of your money (OTM) if its strike price is higher than the price with the underlying stock. A put option is OTM if its strike price is below the price of more info the underlying stock.
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