How to exit from sold Options before expiry

Discussion in 'Derivatives' started by sujittalukder, Feb 15, 2010.

  1. sujittalukder

    sujittalukder Active Member

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    My query is :
    How to exit from Options which are sold before the expiry of the option? For eg. icicidirect gives this type of tips for trading:
    HYBRID STRATEGY: Buy ITC Feb Future @ 248.40/- and Sell 250 Call @ 3.70/-. Exit strategy if stock breaks 245 in spot
    If the spot goes below 245, then

    Future can be exited by squaring off the Buy contract.

    But how to exit from the Call that is sold or written? (before ecpiry of the option contract.)

    Regards
    Sujit Talukder
     
  2. trader.trends

    trader.trends Well-Known Member

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    You just buy the call option of the same expiry and the strike price. You have sold 250 Call, now you buy the 250 Call to cover you shorts.
     
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