Hello, I'm new to options trading. Is someone allowed to "sell to close" a Long Call before the strike price is reached?
For example AAPL is at about 402 a share now in middle of May. I come in and buy 1 contract of "Jul 20th - $600.00 Strike" for .35 cents for a total cost of $35.
Say in June AAPL moves up to about 520 a share. Can I lock that profit in by selling to close the call now? Or do I have to wait until it hits the 600 strike price or until the expiry date on July 20 to find out what happens?
If I can "sell to close the position" at any time why wouldn't someone always pick a much higher strike price to get the lower option price like this? I feel like I'm missing something.
Thanks.
For example AAPL is at about 402 a share now in middle of May. I come in and buy 1 contract of "Jul 20th - $600.00 Strike" for .35 cents for a total cost of $35.
Say in June AAPL moves up to about 520 a share. Can I lock that profit in by selling to close the call now? Or do I have to wait until it hits the 600 strike price or until the expiry date on July 20 to find out what happens?
If I can "sell to close the position" at any time why wouldn't someone always pick a much higher strike price to get the lower option price like this? I feel like I'm missing something.
Thanks.