I understand options for the most part, but have a question. I purchased a $26 call on a stock for Oct 18 – bought 2 contracts. I believe I made a mistake and overpaid for the contract – still relatively new to understanding how options contracts are priced. Stock is trading today for $29.50 so I'm ITM. I can sell my contract at market rate and net about $300 profit. However, can I not decide to buy 200 shares at $26 right now and then just sell them for $29.50? This would be more like $650 profit.
I'm using general numbers here, but trying to decide what to do with an options contract I believe I overpaid for. I've only bought and sold contracts before. Thank you for any guidance you can give.
Leave a Reply