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More Options Questions
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milks
Posted 10/11/2010 12:33 (#1391383 - in reply to #1391348)
Subject: Re: More Options Questions



central MN
You can sell a option at any time. Options have three factors that determine value

1-intrinsic value I like to call real value
2-time value
3-volatility value
Most of the time you do not want to wait for expiration because at that point it only has intrinsic value.

You will not get stuck with a option. 99% of the time you can find a buyer but you may have to give up some value to get him to buy it. The buyer will just exercise the option and take a profit or you can exercise it yourself.
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