The Traderszone Network

Published in TZ Latest News 1 April, 2017 by The TZ Newswire Staff

options trading, basic question on closing/selling before expiration

I am new to options world, but had a lot of experience with stocks. In my studies on options, a lot of books talk about closing at expiration, and assuming an american style option, why wouldn’t you sell the option before expiration if the underlying has exceeded your strike? I am assuming you believe the underlying has peaked and will likely come down before expiration.