Posted: 3/30/2011 6:53:09 AM EDT
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If i buy call options out of the money and the price per option increases, can I sell those options even though they are still out of the money and keep the gains from the increase in price?
Example: Buy XYZ calls with a strike price of $10 for $0.50. The price of the stock is $5. Two months later the stock price is $8 and the options are now worth $1.00. Could I sell those options even though they are not in the money before the expiration date? Thanks. |