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Tuesday, 17 June 2014
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    If the options are going to expire in the cash, the writer can both let the underlying
    shares be known as away at the strike price or buy the choice to close the place.
    The big losses can outcome from an adverse move in the underlying's
    price. The longer an choice has till the expiration, the larger its time value, as
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    Choice writers want if options expire worthless and out-of-the-money, so that they get to maintain all the premium.

    The loss is the difference between the strike worth and the
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    premium initially obtained. A trader doesn't believe
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    Out-of-the-cash places expire when the value of the underlying shares closes above the strike worth.
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