Hello all! Wanted to get insight/advice on an option I did back in August. Relatively new to options, however did quite allot of reading, watching videos and etc to get a better understanding on what I’m doing. Here is my position:
CLSK: $12 Call
Contracts: 10
Current Price: $14.35
Average Cost: $2.69
Market Value: $14,350
Date bought: 8/18
Date Expiration: 1/15/27
CLSK breakeven price: $14.69
Current CLSK price:$23.15
My thoughts are to exercise all 10 contracts due to feeling the stock will continue to go up, however, friend recommended I just sell the option and be done with it. I do understand exercising the option I would have to pay 10k+ with isn’t a problem however I would like to get other insight/ advice to maximize potential. Appreciate all in advance!
Posted by Inkn0w
2 Comments
Sell half. Exercise half
Excersizing any of these contracts now is without a doubt the wrong thing to do no matter what, because you would be forfeiting your extrinsic value on your calls.
If you want to own the stock outright, sell your calls and use those proceeds to buy the shares outright at the current price instead. Or just keep holding the calls, because selling them to buy shares would be a taxable event.
If you think it’s going to keep going up and you want to be long this stock, doing nothing, and holding the calls is most likely the “right” thing to do in my opinion. Just sell some contracts if you want to take some profit