# The Myth of 80% of Options Expiring Worthless



## wayneL (17 May 2006)

Just came across the fair dinkum statistics.

The oft asserted statistic that > 80% of options expiring worthless is a total phallacy.

From the CBOE:

 Most people believe that 90% of options 
   expire worthless. However, this is untrue. 
   Normally, only about 30% of options 
   expire worthless in each monthly cycle.  
 Only about 10% of options are exercised 
   during each monthly cycle, usually in the 
   final week before expiration.  
*In fact, over 60% of all options are traded 
   out in the marketplace.* This means that 
   buyers sell their options in the market, and 
   writers buy their positions back to close.  

Vindicated at last


----------



## RichKid (17 May 2006)

wayneL said:
			
		

> Just came across the fair dinkum statistics.
> 
> The oft asserted statistic that > 80% of options expiring worthless is a total phallacy.
> 
> ...




Thanks Wayne, Mr Mythbuster.....then another way to put it for the CBOE is that 90% of options are not exercised. Wonder what it's like for the local markets?


----------

