Symbols

Strike price is $225 and expires this Friday

10/22/2024 09:49pm

Aime

Given that the call option contract has a strike price of $225 and expires this Friday, here are some factors to consider when deciding when to sell:

Current Price and Time Value: The current price of MicroStrategy (MSTR) is $219.7, which is below the strike price of $225. This means that the call option is currently out-of-the-money (OTM). As the contract approaches expiration, the time value of the option will decrease, making it less valuable.
Risk of Expiration: Since the contract expires this Friday, there is a risk that the stock price will not increase enough to make the call option profitable. If the stock price remains below the strike price, the option will expire worthless.
Profitability Analysis: To determine whether to sell the call option, consider the potential profit from exercising the option versus the premium you would receive from selling it. If the stock price is unlikely to rise above the strike price by Friday, selling the call option may be a better choice to avoid potential losses.
Market Conditions: Review the broader market conditions and any relevant news that may impact the stock price. If there are significant factors that could affect the stock's price, it may influence your decision to sell the call option earlier or hold onto it until closer to expiration.
Premium and Fees: Evaluate the premium you received when purchasing the call option and any fees associated with selling the option. If the premium is substantial and the fees for selling are low, it may be beneficial to sell the option and retain the premium.

Given these points, if you are uncertain about the stock's price movement or if the premium received when purchasing the call option is significant, it may be prudent to sell the call option by Friday to minimize potential losses. However, if you have a strong conviction that the stock price will rise above the strike price, you may choose to hold the option until closer to expiration to potentially profit from the stock's movement.