You can sell your options at any time before expiration. You don't have to hold

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Jan 26, 2021
10:37:58pm

Kerbouchard All-American

You can sell your options at any time before expiration. You don't have to hold

expiration. For example, I bought some MSFT calls yesterday that expire on Friday, in anticipation of the stock popping on a good earnings report after the close today. I will likely sell my contracts tomorrow though and take my profit gained just from the contract premium.

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Kerbouchard

Bio page: Kerbouchard
Joined: Feb 17, 2011
Last login: Aug 24, 2023
Total posts: 24,538 (19 FO)

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Messages

Author

Time

So if I were to buy a $9 call expiring January 29, and the price rises above that, I get the option 100 shares for $900

letthewookieewin Holochess World Champion

1/26/21 10:04pm

Yes

palangi

1/26/21 10:16pm

Yes. You are agreeing to purchase the stock on the 29th for $9/share. If you

Star-Lord

1/26/21 10:18pm

Cool so the people who bought call options at low premiums made a killing in GME, right?

letthewookieewin

1/26/21 10:21pm

Ya, but the premiums are jacked up now. They’re still making a killing though

Princepete

1/26/21 10:22pm

You don’t need the capital to buy the shares

Heath Squashwell

1/26/21 10:25pm

This is fascinating stuff

letthewookieewin

1/26/21 10:27pm

Yes. The hero of r/wsb is currently holding 800 contracts with a $12 strike. He

Star-Lord

1/26/21 10:33pm

You have to have a good understanding of the Greeks to play options

whoneedscorners?

1/26/21 10:34pm

You can sell your options at any time before expiration. You don't have to hold

Kerbouchard

1/26/21 10:37pm

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