New Options Market -- The Long Put
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@withoutajem That is correct. Once you close an option position that you sold (buy to close) you have no more obligations.
newoptguy 1 year ago
Ok that what i thought. But when i sell them i do not have any other obligations no matter what both long calls or puts. That trade is in the past?
withoutajem 1 year ago
@withoutajem Yes, most options are not exercised. Instead, they are sold on the open market before expiration. Remember, you buy options on the "ask" and sell on the "bid", so you need some directional movement, to cover the spread, in order to make any money.
newoptguy 1 year ago
With long calls and puts, instead of exercising my option can i sell the option like a stock? Also, does that mean that then at a later date i might have to buy the stock for someone else?
withoutajem 1 year ago