LogFAQs > #957024717

The thing is when you buy or sell options it's generally not going directly to a person but rather through a market maker who fulfills both ends of the contract.

So you're buying the right to buy 100 shares at $30 for 2 months
You're also selling the right to have someone buy 100 shares at $30 for 2 weeks

In the buying case you have the right to exercise at any time, even though you generally wouldn't before expiry
Similarly for the selling, they have the right to exercise against you. For in the money options, while it could cost them a small amount of profit to do so, it doesn't cost them money to do it as they're getting shares at cheaper than market value, and they are sending the value of your purchased contract to 0 by doing that

The gist is if they can force you out of your bought 2 month position for less cost than you spent on the contract they will as they make money doing so, since they're both the buyer and the seller of the contracts

Basically the market maker's whole goal is to make options make you lose money since that money goes straight into their pocket. Manipulation of stock price by short selling is one way we've heard a lot of as of late but forcing early exercise of contracts with a lot of time on them is certainly a thing they can do too.

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