The expiration variance which is associated with an options position. In practice, there is a lag between the close of an option exchange and the process of notifying short option holders about whether or not the options were assigned due to exercise. This lag results from time needed for processing, and it would not inflict a great uncertainty on deep out-of-the-money or deep in-the-money options. However, when the option is very close to the money, uncertainty about the final outcome shots up.

The pin prolongs uncertainty and consequently the maturity of the option, but it could lead, sometimes, to a noncompensable contingent liability.