re: All About OPTIONS - THREAD

You are thinking about options wrong. Yes, a call is a contract that allows you to buy 100 shares at that strike price, but it is just a trading vehicle. You want to sell your call when it hits your price target (or stop target) or your thesis changes.

You don't usually want to exercise the option or hold until expiration as you lose some of the extrinsic value in the option. When you want out, you just sell it. Even if you want the stock, sell the option and then buy the shares. It is generally the more cost effective route. That extrinsic value is why your math doesn't work out right now (it is constantly changing based on the greeks for that particular contract). That simple math is only valid at the expiration. Options are very dynamic and the price will fluctuate much more than the price of the underlying.