In case of options trading(call),if the stock is above strike price+premium,directly buy selling that.......?

Question

call option can i book profit (or) i need to buy the stock at the strike price at which i took the call option and sell it at the spot price to book profit................

Answer 1

Too risky dear friend.

Answer 2

Yes you can. In fact thats what normally happens unless you have directs to actually exercise the option.

I also dont think that Forex is a safer alternative to options. Especially if you are writing covered calls its the safest form of investing out there.

Answer 3

e.g.

Strike = 30

Call Premium = 2

Stock = 33

If you sell this call you are locking in a loss.  The call should have an intrinsic value of $3.  If there is still time to expiration then there should be additional time premium.  

You are giving someone the right to buy stock at 30 and they are paying $2 for the right and the deal is worth $3.

Answer 4

Just sell the option to close, if the profit takes care of comm. & option charges. Unless you think the stock has further to go. Then either buy a higher strike call/longer date or take the stock up by exercising the option.