You probably won’t actually exercise a call or put. You’ll probably sell it, as described above. If you do exercise a call or buy option, however, you need to record two transactions. To record the exercise of a call option, first record a transaction that sells the call option for zero. Continue reading
Tag Archives: Calls
Online investing: Writing Calls and Puts
A call is an option to buy a share of stock. A put is an option to sell a share of stock. You may write, buy, or exercise calls and puts. When you write a call or put, what you really do is collect money from someone in return for promising the person the option, or chance, to buy or sell a share of stock at a specified, or strike, price by some future date. Continue reading