Should I buy stocks before stock options expire?

Question

But I dont have the money to buy the stocks before expiration of my stock options. Whats are the alternatives to make money without buying the stock if it is 'in the money'.

Answer 1

The answer depends upon the type of stock options you have.

If they are exchange traded options that you previously purchased, and they are in the money, you can sell them with a "sell to close" order.

However, if they are emloyee stock option plan (ESOP) options you do not have that choice. For ESOP options your employer's human relations department should be able to help you determine your alternatives. There should always be a way to capitalize the benefit.

If nothing else you can cycle through the options, exercising a fraction of them, selling the stock you obtained to get more capital, exercising another fraction of them, selling the stock you obtained to get capital, etc. until all the options have been exercised. (This would be somewhat clumsy and should be unnecessary, but it should always be one way to handle the situation.)

Answer 2

You can sell the options before they expire at the market price.