“Alan answers a question shared by Chuck from Glencoe, IL who asks:
“I’m trying to understand how the option buyer makes the decision to act; purchase the stock or sell his option, once his call purchase has been shown to be a good move. I assume, but I’m not positive, that the option can be exercised or sold by its buyer any time after it’s purchased, until expiration. Does this happen often? Why wouldn’t the call purchaser sell back his option, or buy the stock, once the goals for the trade are met? Isn’t there also a risk that the option price, or stock price, will go lower as time goes on?”
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