Let's say I purchased a call option worth $12,000 and the stock rises to be worth $20,000. Premiums aside, if I exercised and sold the stock I would be at a exceptional profit.
However, let's say I dont have enough capital to exercise the option, so instead I would sell it at a higher price than what I paid for it. Because I never owned the stock in the first place, would I still be the liable party if someone exercised the call I sold them, or would it be the party that created or wrote the option and thus has the 100 shares to sell in the first place.
If that's the case I'll have to wait the better part of a decade before I have enough capital to trade options.
Submitted January 08, 2022 at 11:00AM by LicensedGoomba https://ift.tt/3JMuSzf
