Closing an option trade

[Guest Andy G]

I took my first options trade jul spx strike price 4400. I thought that this was going to close automatically and be worthless. But that doesn’t look like the case as it’s now rolled into aug. If I close it now, the loss stated will be realised? I’ve only ever spreadbet before…

[gezmond]

can you post a screenshot?….did you buy or sell and was it a put or call?

[Guest Andy G]

Hi Gezmond,

Just seen this reply sorry.  It was a Put (buy strike price of 4400)  I still thought that it was going to close at the end of last month but now think it expires 17/9 as I found the 'info' tab.  But still not 100% sure what happens then!  Its currently at a loss, so at expiry date will that loss figure just come out of my account, if I dont do anything?

Sorry once again!!!

[gezmond]

Hi Andy 

Yes , if you have bought a put, and if it is worthless at expiration (ie the index is above 4400) then what you paid is debited from your cash….

[Guest Andy G]

Thank you...!