Long dated options question

Discussion in 'Options' started by Coder2, Mar 17, 2008.

  1. Coder2



    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 :)
  2. mihalich


    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.
  3. Coder2



    Thank you for your response.

    coder :)