Comment on Basics on Options Shorting/Writing

Kris commented on 02 Nov 2014, 01:43 PM

Hello Nithin,

What if there is no buyer for a contract(OTM) that I want to short at market value? Will my trade be executed or will it be in open state till any buyer is assigned? If my trade is executed immediately then who is paying the contract premium to me?
Also what will happen if there is no buyer till expiry? Will my OTM position be exercised at zero price?

Another way of putting it – If there is no volume on options I want to buy/sell?

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