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system
execute or trade an options contract?
user
your math shows that you bought an 'at the money' option for .35 and when the stock is $1 above the strike, your $35 (options trade as a contract for 100 shares) is now worth $100. you knew this, just spelling it out for future readers.  1 - yes 2 - an execute/sell may not be nesesary, the ooption will have time value right until expiration, and most ofter the bid/ask will favor selling the option. you should ask the broker what the margin requirement is for an execute/sell. keep in mind this usually cannot be done on line, if i recall, when i wanted to execute, it was a (n expensive) manual order. 3 - i think i answered in (2), but in general they are not identical, the bid/ask on options can get crazy. just look at some thinly traded strikes and you'll see what i mean.
assistant