Hello, I've only been studying options for a few months, and I have a question that I can't find an answer to. If I bought a USDJPY Dec 08 96.00 call, and the USDJPY hit 103.00 in July 08, could I lock this profit in by squaring the trade by selling a USDJPY Dec 08 call in July 08? Would I have to hold these positions until Dec 08? Specifically, what would happen to this trade over time? Thank you for your assistance. Coder
If you sell the call in July with usdjpy at 103 it will be at least 7 points value (in reality 7+time value). The position will be closed, not "locked". You'll recieve 7 points per one contract less premium paid for call less commisions.