I bought 3 contracts for BGU Nov 2010 58 call. I know that it is a bullish case for BGU, but what happens if it doesn't reach the strike price? Would I be able to sell it Thanks for the help.
If the stock doesn't trade above that strike price, the option will be worthless at Nov expiration and you would lose all the money that you spent to buy those options. You will be able to sell it at anytime as long as the option has not expired and shows a bid/offer.
Or you can make an offer yourself and hope someone will buy if the option has any value before expiration.
Every option price has two things included in it--time value and intrinsic value--time value means farther out it is more expensive it is and intrinsic is the value based on the current value of underlying instrument in this case BGU which is trading at around 58.60--so the time value in this case is {option price-(stock price-strikeprice)} which in this case is 3.30- .60 =2.70 as of today. The value of 58 nov call which expires on nov 19th is 3.30 today(lets say u buy here)--to make a profit on expiration date it must trade at 58+option price=61.30 lets say if its trading at 60 on options expiration day then yr 58 call will be executed cause its trading in the money--if its not in the money at close then it wont be. Or you can sell it before then also anytime you feel the stock is done going up and will go down or sideways( you ll lose the time value component even though price stays same)