So, it's the market price of the stock at close on Friday that matters?

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Jan 26, 2021
11:22:01pm

volleyjiver All-American

So, it's the market price of the stock at close on Friday that matters?

If it's $300 all day, then plummets $50 at 3:59 and closes at $50, then that option i used in my scenario just cost me $6650?

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volleyjiver

Bio page: volleyjiver
Joined: Aug 13, 2011
Last login: Apr 19, 2024
Total posts: 8,542 (390 FO)

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Messages

Author

Time

Can someone walk me through this on buying a call option?

volleyjiver

1/26/21 11:11pm

The option prices don't change when the market is closed.

JuicyJam

1/26/21 11:13pm

Right, which means you can't buy options after hours, correct?

volleyjiver

1/26/21 11:18pm

Correct. At open I expect the premium on that $85 strike will be >$120

JuicyJam

1/26/21 11:21pm

Exactly what I was thinking. Thanks.

volleyjiver

1/26/21 11:25pm

Options expire at the end of the day on the expiration day

Heath Squashwell

1/26/21 11:15pm

So, it's the market price of the stock at close on Friday that matters?

volleyjiver

1/26/21 11:22pm

Yes. And most places will automatically exercise options that expire in the money.

zsmooth

1/26/21 11:28pm

<< Deleted >>

WP17

1/27/21 12:33pm

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