Recent content by Jayhawk328

I figured I would look pretty dumb asking these questions, but I really do appreciate you guys taking the time to answer these petty questions. I did say that I am "thinking" about investing in options, but I never said I was for sure going to do it. I obviously have a lot of work to do before...

I know how options work, but I am curious about what happens when I sell the option without exercising it. I have not bought anything yet (although I'm close), but I have a hypothetical situation. Let's say the current price of a stock is $12 and I buy a January 2010 call option with a strike...