AgTalk Home
AgTalk Home
Search Forums | Classifieds (5) | Skins | Language
You are logged in as a guest. ( logon | register )

How do you decide what to do with calls?
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
 
kst1
Posted 5/15/2019 08:50 (#7498265 - in reply to #7498232)
Subject: RE: How do you decide what to do with calls?


dpilot83 - 5/15/2019 09:30

I’m really glad I have them right now but what do I do with them?

Let’s say Dec 19 goes above my $4 strike price by $0.20. Do I exercise them or do I sell them? If they still have time value on them (they don’t have much since they are July short dated) then selling them may be more profitable than exercising them?

By the time it gets close to expiration I suppose they won’t have any more value than the profit one would take by buying them and exercising them.

I don’t know. Just never been in a position to consider this before.

In a way, I guess if I sold the calls today it would be like being hedged at $4.10 Dec 19 and $4.20 Dec 20.

I imagine I’ll just hold on to them until they expire worthless (unless it's really clear I need to exercise them) but I figured I’d ask for advice.


Sell them, then sell futures. You'll have money in your pocket and you'll be short at the level of the sale. Margin calls possible if you sell too soon.
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete all cookies set by this site)