/biz/ - Business & Finance

>>11271838
Correct, your don't have to buy the shares. In that case your option would just expire worthless and you would have nothing to show for it. Remember, around 60-70% of options end up expiring worthless, the longer you hold them the greater the chances of something happening that results in them being worth zero dollars. Also the strike price (45 dollars in the case above) doesn't exactly match the price you need to get above/below to make a profit. This is because there is a premium associated with writing and buying contracts. Your broker should list the Breakeven price, that's the real number you have to beat. This can be a few cents to a couple bucks above/below the strike price.