Just came across the fair dinkum statistics.
The oft asserted statistic that > 80% of options expiring worthless is a total phallacy.
From the CBOE:
Most people believe that 90% of options
expire worthless. However, this is untrue.
Normally, only about 30% of options
expire worthless in each monthly cycle.
Only about 10% of options are exercised
during each monthly cycle, usually in the
final week before expiration.
In fact, over 60% of all options are traded
out in the marketplace. This means that
buyers sell their options in the market, and
writers buy their positions back to close.
Vindicated at last