| Expiration Scenario | Underlying stock price is higher than the strike | Underlying stock price is lower than the strike |
|---|---|---|
| Long call | ITM and typically exercised | OTM and typically abandoned |
| Short call | ITM and typically assigned | OTM and typically abandoned |
| Long put | OTM and typically abandoned | ITM and typically exercised |
| Short put | OTM and typically abandoned | ITM and typically assigned |
Note: In the case of put options, a long-put buyer has the right to sell the underlying shares at the strike price; the put seller has an obligation to buy.