If I were tell a broker on Monday morning to purchase a specific call option, then to exercise the option and sell the stock as soon as it was aquired (regardless of gain/loss), how long would that take?
2006-11-27 09:47:12 · 2 answers · asked by Karma 2 in Business & Finance ➔ Investing
I'm presuming you're only asking out of curiosity because you'd lose money doing what you're suggesting since you'd pay a premium for the call option, but here goes.
Time it would take depends on your broker. With some it could take minutes. With others, hours or longer.
Buying the option should take seconds. Then, once you have it, you can exercise it right away. Depending on who you deal with, they typically will match it up pretty quickly if you want them to. Regardless, if you've got a good broker, they should allow you to sell the stock against your exercised option if you were in a hurry to liquidate the position.
Likewise, after exercising your call, you could buy a put option and exercise that too! lol
Hope that answers your question!
2006-11-27 10:16:49 · answer #1 · answered by Yada Yada Yada 7 · 2⤊ 0⤋
Basically, it would take the time to chat on the phone, have the broker tell you were dumb, and then type it into his/her computer. It takes not time, but what's the point? You can't make money that way. Nothing would change in price enough to cover your commissions. $10 for option, $20 to exercise and $10 to sell. At least those are typical commissions.
2006-11-28 00:46:04 · answer #2 · answered by Ryan W 2 · 0⤊ 0⤋