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I believe that the wrong answer to this question has been given on Yahoo!Answers & should be removed. The value of options go up only about half of the stock's rise because any buyer would want to get that much of the value out of the deal. If you can afford it, for a PUT you buy the stock at the current low price so that you can exercise your in-the-money PUT to sell the stock at the PUT's higher strike price -- or -- for an in-the-money CALL, you exercise the CALL to buy the stock at the CALL's lower strike price so you can immediately sell it at the currently higher price; you will make more profit that way than from merely selling the in-the-money option. You have to allow for commissions. Please identify your financial background & experience when answering.
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