I have purchased call options on a stock and the stock has soared past the strike price in the last three days. The option doesn't expire for another two months, but the stock is already past the strike price? Can I sell it now for a nice profit?
Answers:
You can exercise the option at this point if you want. You can also sell it but the price you get will have to include some time value in it. I would find out which one is better from a cost perspective as your broker is going to charge you a comission to sell to close or to exercise the option.
The decision to sell is completely different than the decision to exercise.
you can sell at any time- you will of course have to pay a commission
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