Options Question.

Discussion in 'Options' started by rchopi, Dec 2, 2005.

  1. rchopi



    I have a basic options question and hopefully someone can clear it for me.

    I have one call option for ABC stock which is trading at say $14 and i call option was bought for strike price of $15 in November for Dec 16th expiration.

    Lets say that todays price is $13 and i paid $1 premium when i bought this option.

    The option price that shows today is 0.70. If i thiknk that the stock is not going to go up, can i still sell this at 0.70 or Is it going to be completely worthless?

    Please help me here.

  2. In simple terms, you can sell it now at the bid price, provided there is a buyer at that price. It the stock price stays where it is at present, it will expire worthless on the expiration date.

    Welcome to the wonderful world of spreads and decay.
  3. rchopi


    Thank you very much.