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The Assignment Risks of Writing Call and Puts - TradeStation
WebApr 3, 2024 · Call options can be bought and used to hedge short stock portfolios, or sold to hedge against a pullback in long stock portfolios. Buying a Call Option. The buyer of a call option is referred to as a holder. The holder purchases a call option with the hope that the price will rise beyond the strike price and before the expiration date. WebAn American call option on a non-dividend paying stock SHOULD NEVER be exercised prior to expiration (Derivatives Markets, 2nd Ed. pg 294). What is always more profitable is what you said, to instead sell your option with time (T-t) left, where T is expiration date and t is time you would exercise, receiving both the difference in spot and strike value (S(t) - K) … grand rapids engineering companies
What Is a Call Option and How to Use It With Example - Investopedia
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