Exercise 1

October 30, 2008

How many days at least before expiration would you buy a call or put of a stock that’s as volatile as AIG now?

trading puts calls
Ivan K. asked:


I just want to know if there are still plenty of people who try to get in even though there are only maybe 4-5 days to expiry.

Would you exercise 1 Oct 3 call (AIG) and it’s 1 dollar on expiration date or sell to close the call? (assuming AIG is trading at 3.86)

Thanks.

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