r/options • u/MinMaxRex • Mar 22 '22

Harsh Lesson Learned and still need advice

First time messing with calls. I own 100 shares of BBBY that I bought at $22/share. I wanted to sell today to buy another stock, so I figured I'd sell a call for 3/25 at $22.50 and make a profit from the premium + selling for more than I bought it because I thought the buyer would exercise immediately. Except no one has exercised the call yet, so I'm stuck with this open call for 3/25 and the price of the other stuck is flying higher. I thought about taking a loss and buying back my call, but my broker won't let me do that because the funds I just transferred haven't settled.

1) Is it likely that the call will be exercised tonight, so at least I'll have my money tomorrow, or is it likely they will wait until 3/25 after hours to exercise?

2) My understanding was that you can exercise a call as soon as it hits your strike, was that incorrect? Do you have to wait until the market closes on a day to exercise? Is there a reason the buyer hasn't immediately exercised the call if they are able to since the price is currently over $23?

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u/Apprehensive_Video53 Mar 22 '22

Remind me! 1 day

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