Dear All
I'm new to options trading in fact I've my first option expires today.
I had call with my broker he said exercise and squaring off are the same things
So even if my option is in the money (compared to underlying) but price of option goes to be zero I'm at loss.
Is that correct? I always thought that when you exercise we get difference in strike price and underlying spot market price
as opposed to squaring option gives price someone is willing to pay
please help
Thanks
Vish
I'm new to options trading in fact I've my first option expires today.
I had call with my broker he said exercise and squaring off are the same things
So even if my option is in the money (compared to underlying) but price of option goes to be zero I'm at loss.
Is that correct? I always thought that when you exercise we get difference in strike price and underlying spot market price
as opposed to squaring option gives price someone is willing to pay
please help
Thanks
Vish