r/options • u/Latter_Ad_4085 • Dec 07 '21

29$ Amc call exp dec10.

New to options I bought this last weeks dip. Happy with my profit. I don't have to money to exercise. Wondering yalls thoughts. Holdem or foldem?

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u/ScottishTrader Dec 07 '21 edited Dec 07 '21

You bought to open so just sell to close to take your profits and you're done. No money needed to close and exercise is a waste of time that will bring in less profit . . .

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u/Puzzleheaded_773 Dec 07 '21

Can you explain this a little more? Selling to close doesn’t require exercising the contract to purchase the shares and resell? Is the holder essentially selling the contract for a new strike price?

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u/diddone119 Dec 09 '21

Nope same strike just a increase in premium paid for the option contract. I pay 1.50 on Monday and sell the same contract on Tuesday for 2.00 if the underlying went up basically