Pin Risk
Definition
The risk that an option expires exactly at the strike price, leaving the seller uncertain about assignment.
Example
Pin risk is highest for short straddles near expiration.
Related Terms
Frequently Asked Question
What is Pin Risk in options trading?
Pin Risk is the risk that an option expires exactly at the strike price, leaving the seller uncertain about whether they will be assigned. It is most severe for short straddle and strangle positions near expiration.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.