Assertion: call's option | /r/HasProperty | sold
Facets:
value: depending on the strategy
type: OTHER
Source sentences:
text: Options can also be sold depending on the strategy a trader is using.
text: option is sold which can be used to pay for the put option and it will still allow potential upside from an appreciation in the underlying asset, up to the call’s strike price.
text: It is important to note that the maximum possible gain is the amount of premium collected when the option is sold.
text: Conversely, if an investor believes the underlying's price will be below the strike, the option will be sold.
text: As the owner of the option, you can either A. sell it on the open market like you would shares, B. you can exercise it, or C. Allow it to become worthless (if expiration day arrives and the option has neither been sold, nor exercised, it expires worthless).
text: Thus, the higher priced option is sold, and a less expensive, further out of the money option is bought.