What's the best way to play an options trade thats ITM, with an expiry a few months out. I anticipate the value will only go up due to macroeconomic conditions, but I have no plans to hold till expiry. Just looking to maximize profit before expiry. When will be a good time to sell? New to options so please be nice.
Posted by Alexa_is_a_mumu
1 Comment
Selling a couple days to a couple weeks before expiration would bring in some additional value (the Time Value). Waiting until expiration, the time value will dwindle away to zero, while the intrinsic value will still be there. If the stock continues to rise near expiration, then it might make sense to hold it all the way.
Read more here: https://www.investopedia.com/terms/t/timevalue.asp