Options Question

[TheLord]

Say I buy an OTM option at .50 and a few days later it increases to .65 but is still out of the money. Can I sell the option to close the position and take the $15 profit minus commission or do I have to wait until the the option is in the money?

 

[OptionParty]

Say I buy an OTM option at .50 and a few days later it increases to .65 but is still out of the money. Can I sell the option to close the position and take the $15 profit minus commission or do I have to wait until the the option is in the money?

When the market is open, you can sell when you have a buyer, or buy when you have a seller.

 

[Martinghoul]

Yes, you can sell... Whether your profit will be $15 or less depends on the bid/offer.

 

[xyannix]

That is why it is called option trading. :clap: