When to sell options before expiration reddit
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Sell put option...
When to sell call options
What Happens When Options Expire?
When options expire, any in-the-money options are typically exercised automatically, meaning the holder will buy (for calls) or sell (for puts) the underlying asset at the strike price.
Out-of-the-money options expire worthless, resulting in the holder losing the premium paid.
This article explores the options available to you with your options contracts as they get close to their expiration dates.
Key Takeaways
- Call options allow contract holders to buy assets at an agreed-upon price at a later date.
- Put options are financial contracts that let traders sell assets at a specific price by a certain date.
- A call option is in the money when the strike price is lower than that of the underlying asset while a put option is in the money when the strike price is higher than the price of the underlying asset.
- A call option is out of the money when the strike price is higher than that of the underlying asset while a put option is out of the money when the strike price is lower than the price of the underlying asset.
- Traders must decide wheth
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