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Northwest Iowa | A friend of mine would say, I'm going to sell that call and hope I get in trouble with it. Baiting the market. That option is around $.16 today. The $4.60 call is at the money and is around $.31. Round numbers ($5.00) can sometimes be a magnet for the market on option expiration. Not a big deal and I'd guess you won't own it at expiration anyway. We're about $.40 away from the strike price today. That's pretty good insulation from market volatility. You'd get the $.16 plus the market would have to rally $.40 so really you'd need a rally of $.56 to get to you. Maybe sell for $.16 and if time and price work for you, take it off the table when it gets to $.08. There is a lot of different ways to look at it. | |
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option strategy
