Investors and traders who have an open long or short option position that has essentially become worthless as a result of time decay and price movement may be able to close out the position through a closing transaction known as a cabinet trade. A cabinet trade is an accommodation trade that allows the option holders to clear the option position off their books for 1 cent per share or $1 per contract. Open long and short positions will be offset and any remaining orders will remain on the books for an offsetting purchase or sale.

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Expiration And Exercise

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