woodisgood
Optimustic Pessimist
Ok, so next basket question. How do you make money by selling before expiration date if the SP isn’t over $873?
Until the SP is over 873, all of the worth of the contract is the time value. You can sell [to close] anytime, which is just flipping the contract after it has appreciated. It doesn’t need to be over the strike price.
Note this is different from “selling a call,” which is being on the other end of the contract (promising to sell shares to someone at a fixed price that may or may not be reached in exchange for premium upfront). You need at least 100 shares to do that.