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He isn’t required to buy/sell, but with options you only have 2 “options”: buy/sell, or let the contract expire. If the contract expires, you lose everything.
by codeddesign 5y ago
He isn’t required to buy/sell, but with options you only have 2 “options”: buy/sell, or let the contract expire. If the contract expires, you lose everything.
This isn’t like holding stock. It’s a price bet in the future with an expiration date.
- irjustin 5y agoErrr, not sure if there's a misunderstanding here. The congress person wasn't holding the options contract. He sold call options to someone else. Which actually means he "owes" stock if the contract is exercised. The congressman is betting the contract will expire worthless and make money on the premiums when he sold the call options. Maybe I missed something?