Do I have to hold options until they expire?
You can buy or sell an option whenever you want for a profit or a loss. In fact, in most cases, you don’t want to hold an option until expiration.
When a call option expires in the money — meaning the stock is trading for more than the option’s strike price — it will automatically be exercised by your broker. That means your broker will buy 100 shares of the stock in your name at the option’s strike price. Theoretically, you can then sell your stock for the intrinsic value that your option had when it expired, less any commissions and exercise fees. But if you sell your option before expiration, you don’t have to worry about that hassle.
For more, check out my options cheat sheet here.
- How do I remove my subscription from automatic renewal?
- How do I unsubscribe?
- I have a Comcast email address. How do I add your email address to my safe senders list?
- How do I cancel a renewal of my subscription?
- How To Trade Our Research
- Who is Zach Scheidt?
- Who is Bill Bonner?
- What is my refund policy?
- How can I the find the expiration date of my subscription?
- What is Lifetime Income Report?
- About Agora Financial
- Agora Financial Reserve Memberships
- Credit Card Statement Information
- Emails from Agora Financial
- Exchanges (Coinbase & Bittrex)
- Frequent Investment Questions
- Fund Transfers
- General Crypto Questions
- Getting Started with my Subscription
- My Account Information
- My Privacy
- Need More Help?
- Orders and Payments
- Publications and Editors
- Refund Policies
- Subscription Renewal
- Using the Website
- Wallets (Trezor)