I think it was this subreddit I asked in a few days back and gained a lot of information. I was even recommended a book, and i am waiting for it to arrive. However, I am still confused on the process of something.
Let's say hypothetically I bought a call option, and the market value of the contract raises, and I want to exit my position of that option for a big profit…
When I go to close out my position doesn't that make me the new seller of the call option? If so, that means I would be the one exposed to unlimited loss potential if things went south?
I'm not talking about exercising and getting the 100 shares.. but rather taking profits from the new market value of the contract. If I go to exit that position, I become the new seller? If not, why?
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