Q: hi 5i team
2 beginners questions about options
Question 1; This may seem like a silly question. I owned 300 shares of FLGT for a while, then I sold 3 july calls at 47.5 Now the silly question is, when the call expires, do I have to give specific instructions to the brokerage, or do they just see the 300 shares in my account and automatically sell them at 47.50 ? (since I did not place both the buy share order and sell call at the same time).
Question 2a and 2b: For the sake of the question, let's assume a zero bid ask spread. From what I see in the quotes in my account, and suppose the call was to expire at the same prices tomorrow, then I would be better (by about 1000$ US) to buy back the calls and sell the shares at the current prices then to let it execute ! I am surprised by that, any comment you can make, does it seem normal ?
Question 2b: then IF I thought the price of the stock would keep going up, it would be better to close out the position now.
many thanks
2 beginners questions about options
Question 1; This may seem like a silly question. I owned 300 shares of FLGT for a while, then I sold 3 july calls at 47.5 Now the silly question is, when the call expires, do I have to give specific instructions to the brokerage, or do they just see the 300 shares in my account and automatically sell them at 47.50 ? (since I did not place both the buy share order and sell call at the same time).
Question 2a and 2b: For the sake of the question, let's assume a zero bid ask spread. From what I see in the quotes in my account, and suppose the call was to expire at the same prices tomorrow, then I would be better (by about 1000$ US) to buy back the calls and sell the shares at the current prices then to let it execute ! I am surprised by that, any comment you can make, does it seem normal ?
Question 2b: then IF I thought the price of the stock would keep going up, it would be better to close out the position now.
many thanks