No, stock options do expire. The expiration period varies from plan to plan. Track your options' exercise periods and expiration dates very closely because once your options expire, they are worthless. There are often special rules for terminated and retired employees, and employees who have died. These life events may accelerate the expiration. Check your plan rules for details about expiration dates.

Usually all options have a time limit to exercise the right. However in the options market you could negotiate the option anytime provided you want to sacrifice part of its value.

Yes, the buyer of a stock option can exercise at any time before expiration. All stock options are American style and can be exercised any time. Most index options are European style and can only be exercised on the last day before expiration. That being said, it is unlikely that any option will be exercised unless its time value is very small. This usually happens only near expiration. If the option has time value it makes more sense for the holder to sell the option and capture the time value. Sometimes call options are exercised to capture the dividend value. If you sell an option, be prepared for exercise AT ANY TIME!

what is the risk to trade option

Hi, When I ask the question "how do I chose the best stock options?" What that question means to me is which stock option will make me the most money and if it is a covered call (which it probably is) then I have to ask myself "which stock has very little rish of failing or going down a large percentage in the time that I have sold the contract for. Well I am still looking for an easier way to do this!! If someone knows how please emial me at michael35vegas@live.com right away. The only way I know how to do this is by looking at each stsck and looking at what their options pay monthly versus what the cost of the stock is. For example: If someone pays you $200 for a stock that is worth $40 now for a chance to buy your stock for $50 in one month after a month then the only thing you need to worry about is if this stock is so volatile that it might go down to $20 in a month. Let's compare what if we can buy another stock that is $20 so we can buy twice as much and someone wants to pay you $700 just for the chance to buy your stock for $25, but you own twice as much, so it equals the same investment as the $40 stock. This stock, though, is a much greater risk. It may go up alot or may go down alot and this stock does these things day by day so it is very, very inpredictable. That is why the stock is worth the same value as the other one and the time of the option ( one month ) is the same, but the amount of compensation is much greater. It is similar to gambling, except you really always win because you always get paid up front and if your stock goes up, the option is exercised and you keep both the money up front and the purchase price of the stock (which is higher than what you paid). If the option is not exercesed then you keep the money that was paid for the option and sell another option for the next month, unless the stock has dropped too far on paper to sell an option. Even in that case though, you can just wait until the stock returns to a value that options can start being sold again. MY GREATEST QUESTION THAT I HAVE FOR THE ADVANCED TRADERS WHO ARE FAR MORE ADVANCED THEN ME IS WHAT IS THE BEST WAY TO FIND STOCKS THAT HAVE THE HIGHEST PAYING OPTIONS MONETH TO MONTH??? PLEASE TELL ME IT CANNOT BE SIMPLY SEARCHHING FROM ONE STOCK TO THE NEXT?? THERE MUST BE A FREE WEBSITE OR EVEN ONE THAT WE CAN PAY A MONTHLY FEE THAT WILL GIVE US A LIST OF WHAT OPTIONS PAY BEST FROM BEST TO WORST AND SHOWING THE RISK OF THE STOCK AT THE SAME TIME?? PLEASE ANSWER IF YOU CAN. MY EMAIL ADDRESS IS : michael35vegas@live.com AND MY AIM and SKYPE USER ID NAME IS: michael35vegas Sincerely, Michael Dunn