Ago how high ?, page-105

  1. 25,252 Posts.
    lightbulb Created with Sketch. 1588
    Ok, but why exercise them at all? Why not sell them as options and not have to outlay the $75k? Your profit doesn't change by exercising them and the only possible arguments I can see for exercising is 1. The options are trading at a significant discount to their true value or 2. You want to sell some and use the profit to convert the rest.

    Number 2 can be a good strategy with options but when they're so far out of the money with little chance of getting over the line I don't think it adds up in this case.

    Remember, when you exercise them, you'll have a couple of weeks where you can't sell as they won't be in your account to sell them, so that just adds another layer of risk.

    Don't get me wrong, I see nothing wrong with a gamble on the options, I just don't think some people here are thinking through(maybe just don't understand) what they're doing properly.
 
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