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Anonymous asked in Business & FinanceInvesting · 2 months ago

Can you sell an option at a profit if the price of the underlying asset is below break-even?

2 Answers

  • kswck2
    Lv 7
    1 month ago

    Rookies should stay away from Several investments: Bitcoin and crypto's, Futures, Penny Stocks, Forex, Options, and Anything you do not Completely Understand. 

  • 2 months ago

    As long as it is standard exchange traded option you can sell it anytime for any amount someone is willing to pay. It does not matter what the price of the underlying asset is.

    I have many times sold options when the price of the underlying stock is below the strike price. Some of those sales have been "sell to close" transactions and others have been "sell to open" transactions. Some of tho "sell to close" transactions realized a profit and others have realized a loss.

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