taking premium for sold options

Discussion in 'Options' started by cloned777777, Sep 8, 2005.

  1. If I sell options ( call / put ) for a premium,
    can i take out the premium right away ?

    or i have to wait till it expires.

    I mean, i have the underlying ( it is a covered call ) , and i want to write options..
    but i need to receive the premium now..

    broker told me that i can not take the premium out 'till expiration..even if this is american style option deal

    me confused..

    trading is the most confusing subject of all..
  2. i need the answers to forex and also equity plz
  3. basically the money stays as a credit in your account. if you close out the position you can keep the net difference btwn where you sold the option and where you bot it back.

    Think about it you write $10K in premium, do you think the broker will write you a check for $10K while you still have a risky position on? Think, did you take your Series 7? Margin on option section states you are required to have cash for 20% of the underlying + the premium you received.
  4. just21


    I think you could take it out with IB.
  5. for euro currency futures ?
  6. areyoukidding?

    yeah but i am covered...
    why are they worried about me taking the money and running.

    remember i will get my money sooner or later any ways since i am covered

    so i do not see the point of margin

    I AM COVERED AND i SOLD THE OPTION..no need for margin
  7. i think you are talking about if the underlying is loosing ...

    but i thought that was a separate issue..

    i get it now :)