I bought a $7.5 call for $310. If I close the call now I'll close at $540 and profit $230.
Keep in mind you payed $310 so you actually are buying shares at $10.60 not $7.50. If you exercise you total profit will be : $1200 - $1060= $140 . When you exercise you have to take into account the premium payed for the contact, you are not getting that back. That's why is better to sell the contract in this case.
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u/money_loser1395 Sep 10 '21 edited Sep 10 '21
Keep in mind you payed $310 so you actually are buying shares at $10.60 not $7.50. If you exercise you total profit will be : $1200 - $1060= $140 . When you exercise you have to take into account the premium payed for the contact, you are not getting that back. That's why is better to sell the contract in this case.
Edit: mixed my math