/biz/ - Business & Finance

Can someone explain this option scenario?

Let’s say I buy 25 contracts of company A, at $17. The trading price right now is $14. The expiration is 6/15. I understand that if my contracts don’t reach $17 by 6/15, they will expire worthless and I will lose all my money. But let’s say it hits $18, before expiration.

Would I be able to sell my contracts for profit at that moment? Also, what if I believe they will go higher than the $18, I hold and they will increase in value? Let’s say they reach $20 on 6/15. Do I have to sell my contract or can I let it expire and it will give me my profit automatically?

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