love it. push to 10 before I excise this lol
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I love to study companies and Candle Stick formations. My goal is to become a full-time trader.
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Yeah great day :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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BelleWeather : Are you out of your mind?! Sell those contracts!
Sean Parker OP BelleWeather : i want the shares though. I know it's a good profit already but i think achr is going to be huge and i want to fully capitalize
Sean Parker OP BelleWeather : and I did sell one today to double down on $Rezolve AI (RZLV.US)$
BelleWeather Sean Parker OP : Then sell the contracts and buy the shares and keep the extrinsic value in profit. With that expiry, and a plan to exercise, why use leverage?
The intrinsic value will stay the same, and paying tax on the extra income still leaves extra income.
BelleWeather Sean Parker OP : Huh, interesting, I’ll check it out, thanks!
And congrats on your profits!!! (Also in Archer, sold off all short dated calls but hold shares and LEAPS now.)
Sean Parker OP BelleWeather : sounds like you know more about options then me lol. so you think I should exercise now or just sell out right? I'm still new to options, I'll just know how to pick them. I've never actually exercised one, i always just sell them.
BelleWeather Sean Parker OP : Selling the calls and buying shares with some of the profits is how to best capitalize in that case. Again, congrats.
(Had this not happened, with that expiry you’d have lost money and will if you exercise, not considering taxes because I can’t, but I can’t see why it’d make sense to pay for the privilege of taking on risk?)
BelleWeather Sean Parker OP : Definitely sell, like set the limit order now, so it will hit in spikes at open. Then buy the shares and hold as you described to meet your goals.
You’re doing great, and I also just started with options this past spring, the learning curve is steep.
What I am trying to point out, is that ITM calls have intrinsic value but still have extrinsic before expiry, and in this case, exercising will throw the extrinsic away.)
Sean Parker OP BelleWeather : i get what you mean and that's what I've been debating all day. i thought exercising the option gave me the rights to buy 100 shares for 5 dollars? are you saying it would be better to take the profit and buy the shares at the price they're now? that's just confusing because it throws off everything i thought i knew. i also have a 4 dollar call option i was going to exercise but i still have 53 days on it
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