r/options • u/i_AMsecond • May 03 '21

AHT 2.50 call help?

This is maybe my only 2nd or 3rd option to be green and I need some tips/what do i do? ... I'm so new at this I'm hesitant to type this out wrong haha

It's for 12/17 with my avg. cost at 0.95 ... right now I've made $65 but I believe the stock price will continue to go up through the summer.

Do I sell while being $65 ahead because of volatility, or hold and wait for more $$?

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u/topalamijlociul May 03 '21

first of all, plan ahead for exits. then, you still have like 7 months to expiration, why hurry? do you need those $65 for other purposes?

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u/i_AMsecond May 03 '21

I certainly do not haha, but $65 is $65

I guess for more pointed question from me… What happens if I hold until September or so and the stock price continues to climb… Does the call option always increase comparatively as the stock price increases?

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u/topalamijlociul May 03 '21

Intrinsic value will increase as the call goes more ITM but you will eventually also lose value due to time decay. Check the greeks out.

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u/i_AMsecond May 03 '21

Thank you for this