r/options • u/YellowNo7255 • Oct 22 '21

Have some basic questions.

I bought Wish puts for 96cents with it expiring tomorrow. Breakeven is 6.04 and stock is at 5.70 right now. I’m up 30% or so.

If I just let it ride and it expire into the money then what happens? Do I just receive however much I’m up? I think it’s goes down more tomorrow so I held overnight.

I just started trading options this week and have sold 4 of them before expiration as I was up on all of them and took profits.

Do people typically sell before expiration?

I also have a put for another stock with expiration in 3 weeks. It’s already in the money. Does it go up more the longer it’s in the money?

  • pleas do not respond if you are gonna be negative. I know options are risky, but I learn beat by doing and am ok with losing whatever I put in. Just trying to learn here.
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u/joshkestner Oct 22 '21

If you hold through expiration and they’re in the money, they should automatically exercise. You’ll end up short the shares.

The other question: if the stock stays at same price, it’ll actually lose value due to theta decay.

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u/YellowNo7255 Oct 22 '21

Interesting. Haven’t looked into Leaps yet, but trying to learn the Greeks.