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Call Option buyer


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Can anyone clarifies the following: A buyer buys a call option expiring within 2 months. The option keeps on going up and is well in the money. Let us assume the buyer does nothing when expiry times arrives. What happens next?
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an option confers the RIGHT, but not the OBLIGATION, to buy or sell at the strike price.

Unless you explicitly exercise the right on (or, in the case of American-style options, before) expiry, the options will lapse and the seller will have received the premium for free.

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  • 8 years later...

One way to make a bit of pocket money (GET THE TRADE RIGHT) ... (THEN MONETISE)

 

You will see he bought 50,000 shares at $14.8947 and 500 call options at 20 cents, that's twenty cents.

 

You will also see that his portfolio is now worth $46,034,545.47.

 

 

How do we know this?

 

Because he just posted the screenshot of his portfolio on https://www.reddit.com/r/wallstreetbets/

 

 

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