I admit to ignorance in options. Considering the amount of posting which has been done on option trading, specifically the 7 options, my interest has been peeked. I like to know what is going on. Am I correct that for 7 calls and puts, if the strike price is not met by the end of option Friday the option expires worthless. Since the pps closed under 7by a couple of cents on Friday does that mean that all the 7 call and put options expired worthless. Since it was only under a couple of cents that seems harsh for the option holder and a good reason not to play options. Also, since options may or may not get into the money I take umbrage with people who say when they buy an option they are investing in the company. The option may or may not result in shares and unless an individual buys shares or gets shares they have no skin in the game and are not investors in the stock. At most they can say they are gambling a few cents to get an opportunity to buy shares and a part of the company. Also once you buy an option, can you sell the option before option day on the open market. Also can you exercise your option and call away shares at the 7 strike price before options Friday. Thanks for the information and education.
YES. An option can be exercised at ANY time. However doing so prior to expiration is not wise, since you are giving away the time value premium. You are better off to sell the option for the full value (in the money amount, plus time value).
Now, can we move on to more childish things like ..... BEAR RAID COMING!!!!!!!! .... me short .... (not).
While I strongly believe call options can be exercised prior to the last trading day you should further research the topic to be absolutely sure. Exchange traded options can be sold ahead of the expiry day when one owns them. I have done so several times. When a stock is halted so are the options.
Options are priced on the following combination. Stock price, days until expiry and the perceived volatility. Volatility is often an options holders friend.
Thank you for your response and info. But you did not answer my key question. If one held through the expiration, and at the close the pps was slightly below 7, did the option holder lose their entire cents investment, i.e. the options expired worthless. If you are right that call options could have been sold earlier, the right move would have been to have sold the options on the few days pps was over 7. Otherwise, the option holder wasted their gamble and never had an interest in sprint. Am I correct??