Can you sell a call option before the expiration date?

Question

Say I want to purchase an Aug 2006 25.0000 call which is currently 10 cents. Say in a week from today the stock is at $26 and the option is worth $2. Can I sell that option, or do I need to wait until the expiration date?

Answer 1

it really depends on what type of call option you are holding. if you are holding an American call option, you can sell it anytime. if you are holding a European call option, you can only exercise it at maturity. American call options have a higher premium because of the increased flexibility.

Answer 2

1

Answer 3

Sell Call Options

Answer 4

Any option, whether an American or European style option, can be sold at any time. When it comes to exercising options, American can be exercised anytime while European can only be exercised at the end of the options life.

Yes, most options traders do not hold the option till expiration unless their writers. Most buyers will sell the option prior to expiration. Why? Because 80%-90% of options expire worthless, so buyers lock in profits when the options rise in value. Writers on the other hand make money on the premium received and the decay of the premium and want the option to expire worthless.

So, now that I've written a complete disseration, the simple answer is yes, you can sell an option any time prior to expiration.

Answer 5

Yes you can write an option, buy and option, or sell an option anytime up to the expiration date.

If you were to hold the option into the expiration date your brokerage is going to exercise that option meaning buy the underly ing stock. Therefore you better have the $26 dollars in your account to buy each share. Dont forget that 1 option contract represetns 100 shares.

Answer 6

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Answer 7

Yes you can sell or buy any stock option as long as there a buyer or sell any time up to the day it expires ... Many traders day trade option best of luck

Answer 8

Yes you can sell it at any time.
More often, you can sell the calls, and if the price goes down far enough, you buy them back at a profit.

Answer 9

absolutely. that is exactly what you would want to do unless perhaps you actually wanted to own the stock.

there is a lot of information available at the Chicago Board Options Exchange that will help you learn
http://www.cboe.com/

Answer 10

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