LogFAQs > #957025488

Forceful_Dragon posted...

But by selling 2 week calls in the money doesn't it stand to reason that those calls are always going to get exercised because they are already in the money?

So how do you make many if you receive X for a 2 week call but you will invariably lose a chunk when the already-in-the-money option gets exercised?

I guess I just assumed if you were buying or selling a call it would be for a price target that hasn't already been reached.

They usually don't get excercised. There are reasons to buy in the money calls where you want to hold them. For example I bought some deep in the money cracker barrel calls as a form of leverage. Instead of buying 15 shares for $2000, I bought a $2000 deep ITM call which means I'm getting 6X leverage back for my money

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