marsilni

Joey, please can you come back on this ? "If your option is deep in the money you don't exercise the option and blow away your time value, you sell the option. "
why you don't exercise an option that's is deeply in the money...and how come you sell it ? sorry, i might be slow on this

JoeyDVivre Wrote:
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> spreads gives the classic wrong answer. If your
> option is deep in the money you don't exercise
> the option and blow away your time value, you sell
> the option. In the case he gives the stock is
> very volatile (doubling in 2 months) so the time
> value is worth a ton. spreads - you need to check
> this out and thoroughly understand it.
> Understanding stuff like this is what
> distinguishes CFA charter holders from joe
> bago'donuts financial advisor.