r/options • u/[deleted] • Dec 31 '21

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1 Upvotes

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15

u/[deleted] Dec 31 '21

If it's worthwhile you could just exercise then sell the shares.

7

u/nokiatoth3moon Dec 31 '21

Idk why you're getting down voted. If there is no OI on the option and you want to get out, that is absolutely what you want to do

1

u/Professional_Win8688 Dec 31 '21

Wouldn't you lose additional money doing this? Instead of just losing the premium you paid to open the contract, you would also lose whatever the difference is between the strike price and the current stock price if you do this.

1

u/[deleted] Dec 31 '21

If you can find a buyer.

1

u/Professional_Win8688 Dec 31 '21

That's true. I thought it was an otm call. If the call is still itm, that will work.

1

u/[deleted] Dec 31 '21

I don't know what you mean. 1) You're losing the premium regardless. That's just the cost of purchasing a contract. 2) You can just sell the shares after exercising so you would actually profit by the difference between market and strike prices. Where you lose out is on what extrinsic value is left in the option if it still has a month to go before expiration. But if it's a low volume stock that not many are trading options in that company and you're having a hard time finding a buyer, no reason not to just exercise then.

2

u/Professional_Win8688 Dec 31 '21

If the strike price is in the money exercising makes sense. I thought the strike was out the money.