I'm new to this, and may have made a whoopsie and just want to know for sure.
So I bought 2 call options for AEO at a .08 premium as my first dabble with options. Generally my strategy has just been to buy shares of a stock and not sell them unless I thought it would go significantly lower for one reason or another.
But I checked my options and saw that it increased to a .11 premium and was like that's awesome and sold one without thinking about it.
What I am confused about is say the option becomes in the money prior to the strike price and whoever bought the option I sold, is it me who is liable to give them 100 shares of AEO or who ever originally made the call?
The reason I bought 2 cheap options was to see and luckily my thinking to only sell one may save me if I am liable to give 100 shares of aeo to somebody.
But is that how this works, since I sold the option call I bought am I now obligated to sell 100 shares of AEO at the strike price if whoever bought it executes?
Edit: I should mention I don't think it will hit the strike price of 13 dollars within the next few days
Leave a Reply