Quote:
Originally Posted by Cheken
Also i actually never exercised options before as im fairly new with it - so assuming i have liquidity to exercise this option - i would weight the benefit on the gain on the call vs the actual exercise price vs market price?
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You should do a lot more research before trading them.
If you’re simply buying calls and puts, you don’t have to have any liquidity to back it. You’ll sell the options before they expire, or let them expire worthless. Generally speaking, trading short term call or put options around highly volatile events like earnings is a tough play to profit from. The premiums are enormous, and even big moves in the right direction might leave you in the red. But there are alternative options strategies you can employ to profit from a move of whatever magnitude you think might occur.