RE: [TheOptionClub.com] strike price reached?

 

Yes, but the call would still have some intrinsic value.  Suppose the stock goes to $21.10 but the option is selling for $.30.  He’d be better off by $.20 if he sold the option and bought the stock at the market.

 

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Sam H
Sent: Friday, April 23, 2010 12:42 AM
To: OptionClub@yahoogroups.com
Subject: [TheOptionClub.com] strike price reached?

 

 

Let's assume (always a bad thing to do) that you sell a "covered call" with a strike price of $21.00 and the price goes a few cents over $21.00 with a couple weeks until expiration and the owner of the call delays in taking action, does he not risk it falling back under $21.00 before expiration and therefore not being able to buy it?

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