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NYSE Euronext Put options-hold or sell?

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NYSE Euronext Put options-hold or sell?

Postby nicky73 » Tue Nov 14, 1989 5:13 pm

I am holding NYSE (symbol:NYX) Jan. '09, $25.00 CALL options. Should i hold or sell?
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NYSE Euronext Put options-hold or sell?

Postby marcel » Tue Jun 26, 2012 1:32 am

I am holding NYSE (symbol:NYX) Jan. '09, $25.00 CALL options. Should i hold or sell?
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NYSE Euronext Put options-hold or sell?

Postby anakausuen91 » Tue Jun 26, 2012 1:39 am

No one can tell you with any certainty if the option is going to gain or lose value prior to expiration. My recommendation to you is to look at the option as if you did not already own it and see if you would want to buy it at the current price. If the answer is "no" it is time to sell it.

I will add that as the option approaches expiration some of its properties change. Particularly, given that it is at the money (ATM), the "gamma" or the option will become higher. (In other words, as expiration gets closer the option price will become more volatile.) Also, remember that theta (time decay) increases exponentially for an ATM as expiration approaches. Consequently I usually prefer to sell an naked long option before expiration gets too close, but your risk profile may not be the same as mine.
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