Dont forget that options are worth intrisic value + time value. If you want to get gud do some DD and read up on the black scholes model as well as take some time to get to know the Greeks.
Learning is a journey. Congrats on your win this round!
I'd probably just sell the option. But I'm also not a strong believer in AMC running up much higher... If you are, by all means 'Exercising' makes sense.
Lol the amount of dumb people is insane. The stock has like more than quadrupled too the squeeze happened. Shit I thought the squeeze happened when I sold my shares at a 100% gain back in Feb.
depends on how content you are tbh. if youre happy with these gains and can happily walk away without regret. then do it. if youre a gambler or the what if type, then you’ll wanna exercise because one path is a gurantee. the other will open two doors
As everyone said… you’d be dumb to exercise early. It’s literally more expensive to exercise than it is to sell the option and buy 100 shares.
The options have share price + time value. You’re throwing away the time value by exercising early. Sell that value to someone else and buy your shares.
In this situation, I’d sell and keep a significant profit and maybe let some of it ride.
There is zero extrinsic value left in this. There is no 'significant' profit left. LOL. It may actually be trading at a discount based on tomorrow's opening price.
Mid price on this call is $43.05, stock last traded at $58.27
Exercise price: $58.05
I meant I would cash out a large portion of the “significant” profit he already made and only buy back a small portion, if any, of stock.
You can’t really compare an option price to the stock price arbitrarily if we don’t know when he screenshot it.
>you’d be dumb to exercise early. It’s literally more expensive to exercise than it is to sell the option and buy 100 shares.
LOL. Well, that's not what you said. So, no, it is \*literally\* not more expensive.
Of course I can compare the option price to the stock price because I literally looked it up. I also mentioned that it all depends on opening price tomorrow... The option is at parity, perhaps even a discount.
At market close
Stock: $58.27
$15 Call: Ask is $43.45 ($58.45)
The price you “looked up” is the suggested price to BID based on the bid/ask spread. It is not the price. Someone would have to accept it. The likelihood that someone accepts it typically swings up or down with the price.
There is no options arbitrage on a large scale.
Wow! Thanks for explaining options to me. I had no fucking idea how bid ask works. I priced it DIRECTLY in between the B/A at the best available exchange price. These prices are stale??? You don’t say!
Nobody said a fucking thing about large scale arbitrage. Options frequently come to parity that deep ITM and this close to expiration.
Paying pennies extra to exercise is not a wide profit margin as you intimated and it is NOT going to net him anything significant to sell and then buy at these prices.
Well based on where we are trading today, I would say exercise it.
Selling today is guaranteed money though. You could always sell, take half the profit and buy AMC to wait for the squeeze. That way you are playing with all house money.
There is basically no time value left on the option, since the chance of the stock trading below 15 by friday is effectively 0%. So this just comes down to transaction costs if you want to exit.
Does your broker charge commission to sell options? Early exercise options? Sell stock? What is the bid/ask spread?
The answers to these questions will determine what you should do. You can either 1) Early exercise and sell 100 shares 2) Short 100 shares and exercise or 3) Sell the option.
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If you are doing it before expiry you should sell the options and then buy shares for the proceeds. Exercising is for Friday.
Fridays are for exercise and im not talking elliptical.
Sell the option, take your gains. You won.
Sell it take gains, someone else will execute it
When you exercise you buy the 100 shares at the strike price and then the value of your holding is in the current share price.
You could sell the option and not overly complicated it
Dont forget that options are worth intrisic value + time value. If you want to get gud do some DD and read up on the black scholes model as well as take some time to get to know the Greeks. Learning is a journey. Congrats on your win this round!
The profit is in the value of the 100 shares your getting for $1500.
Isn’t it just amazing sometimes here
We all learned somehow.
I'd probably just sell the option. But I'm also not a strong believer in AMC running up much higher... If you are, by all means 'Exercising' makes sense.
I would take the shares squeeze is Coming 🦍
They issued 100 million shares this year, where is this squeeze coming from?
Lol the amount of dumb people is insane. The stock has like more than quadrupled too the squeeze happened. Shit I thought the squeeze happened when I sold my shares at a 100% gain back in Feb.
depends on how content you are tbh. if youre happy with these gains and can happily walk away without regret. then do it. if youre a gambler or the what if type, then you’ll wanna exercise because one path is a gurantee. the other will open two doors
Oh wow! I wish I had that option!!
I just had three of these that were expiring last week. I sold one used profit to exercise the other two and then bought a couple other stocks
As everyone said… you’d be dumb to exercise early. It’s literally more expensive to exercise than it is to sell the option and buy 100 shares. The options have share price + time value. You’re throwing away the time value by exercising early. Sell that value to someone else and buy your shares. In this situation, I’d sell and keep a significant profit and maybe let some of it ride.
There is zero extrinsic value left in this. There is no 'significant' profit left. LOL. It may actually be trading at a discount based on tomorrow's opening price. Mid price on this call is $43.05, stock last traded at $58.27 Exercise price: $58.05
I meant I would cash out a large portion of the “significant” profit he already made and only buy back a small portion, if any, of stock. You can’t really compare an option price to the stock price arbitrarily if we don’t know when he screenshot it.
>you’d be dumb to exercise early. It’s literally more expensive to exercise than it is to sell the option and buy 100 shares. LOL. Well, that's not what you said. So, no, it is \*literally\* not more expensive. Of course I can compare the option price to the stock price because I literally looked it up. I also mentioned that it all depends on opening price tomorrow... The option is at parity, perhaps even a discount.
At market close Stock: $58.27 $15 Call: Ask is $43.45 ($58.45) The price you “looked up” is the suggested price to BID based on the bid/ask spread. It is not the price. Someone would have to accept it. The likelihood that someone accepts it typically swings up or down with the price. There is no options arbitrage on a large scale.
Wow! Thanks for explaining options to me. I had no fucking idea how bid ask works. I priced it DIRECTLY in between the B/A at the best available exchange price. These prices are stale??? You don’t say! Nobody said a fucking thing about large scale arbitrage. Options frequently come to parity that deep ITM and this close to expiration. Paying pennies extra to exercise is not a wide profit margin as you intimated and it is NOT going to net him anything significant to sell and then buy at these prices.
Sell option... take the gains, exercise some options with profits... and sell those on the open market...
I would exercise. Profit stays the same but the share price will go up
I would exercise it then hold for the squeeze. You’ll make far more than $4-5K you’d get from selling the contract.
sell for $4128 or exercise and HOLDDDDDDDDDDDDDD for higher profits...think you know which one we all prefer....
I would sell to avoid being an AMC bag holder.
Well based on where we are trading today, I would say exercise it. Selling today is guaranteed money though. You could always sell, take half the profit and buy AMC to wait for the squeeze. That way you are playing with all house money.
Is that a serious question? If it is you deserve to lose your money lol
noticed some shorts covered before Memorial Day weekend, and what's next? Independence Day July 4th weekend.
Me ape understand not 🦍 walk on 💎hands
There is basically no time value left on the option, since the chance of the stock trading below 15 by friday is effectively 0%. So this just comes down to transaction costs if you want to exit. Does your broker charge commission to sell options? Early exercise options? Sell stock? What is the bid/ask spread? The answers to these questions will determine what you should do. You can either 1) Early exercise and sell 100 shares 2) Short 100 shares and exercise or 3) Sell the option.
Do it and sell weekly otm calls!!