I bought my first options contract yesterday, INTC JAN/08 Call Strike 20. Premium 1.60. Today it closed at 1.75. The stock closed at around 19.34. Now even though the option is not in the money, I still have a $15 dollar profit. Obviously I wouldn't exercise, but I'm thinking of just selling the option if it goes up a bit more. So even though the option is not in the money, I've still made money on it. Am I correct in my thinking? What is the advantage of exercising an option, if you can just sell it outright, and be able to make a profit even though it's not in the money yet?
2007-03-21
10:44:12
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3 answers
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asked by
mike9626
3