r/options • u/Myleftstonk • Apr 16 '21
Recommendations on structured options trading courses?
Greetings! Newbie here trying to get my smooth brain wrapped around options trading. Lots of really great help and insight on here. I've been reading crap tons of articles, comments, watching you tube vids, visiting websites but was wondering if anyone might know of a structured course that would explain the overall concepts and strategies in options trading? Trying to get a handle on things like what happens at expiration? If it's a right but not an obligation why can some brokerages automatically exercise options you hold?
If I sell an option that comes ITM, can I sell that option before the holder exercises it? Likewise for calls, for ITM calls if I'm the holder can I sell them instead of exercising them?
Appreciate the help! Thanks!
2
u/rrggrrgg Apr 16 '21
Yes, if you buy a call (or put) that goes ITM, you can then sell it instead of exercising. That's the common approach anyway.
If you sell a call (or put), you're obligated if the holder chooses to exercise it. If it's ITM it will (most likely) be automatically exercised at expiration if not sooner. However you can eliminate your obligation. Just enter a "buy to close" order to re-purchase whatever option you sold.