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Okay so I have a scenario. Let's say a stock is trading at $10 and I have a some call options with a strike price of $12 and the stock goes to $14. I then exercise my right and borrow $50,000 in order to exercise my options. Since the stock is at 14 and I have exercised my options at 12, will...

Okay thanks for the info I will definitely keep that in mind. So let's say I have two choices 1. Exercise Half of my options. And then use the profit from the shares after I sold them on the market to exercise the other half of my options? 2 . Or should I borrow some money from my margin...

The reason why I'd like to exercise is because I've bought some call options on some oil stocks with a 6 month expiration date, I won't be exercising them this minute but none the less I would like to exercise my right If they happen to be in the money in the upcoming 6 months. Now exactly why I...

Hey guys, This may sound like a silly question, but I'm with td waterhouse and I have a bit of confusion as HOW exactly I exercise my option. If I "sell to close" I am selling to profit off of the appreciation of the underlying asset (the option contract it's self) If I buy to close I am...

What if I was trading naked options purely for the profit of the premium, but didn't have the capital in my trading account to fulfill the contract if the buyer chose to exercise his option. In the past when I was younger(and less educated) I would sell options for the profit of the premium...