can i sell call option before expiry?

@hosea_makelele - 10 months ago - Forex Education

So I'm thinking of buying a call option and this is going to be the first time i am trying options. Actually, my friend talked me into options, and I am a bit skeptical. My question is: after i buy the call option, will i be able to sell it before it expires & how liquid is the option market?

@purple_hills - 10 months ago

Yes, you can sell a call option before expiry, but if you had used the call option as collateral for another transaction, your broker would not allow you sell it. However, remember that as the expiration date nears, the option becomes less valuable (time decay) so the price may drop, and you sell at a loss.

@cahaya_dewan - 10 months ago

Yes, you can sell to close the option contract. However, you want to ensure the premium you are selling the options contract for, is higher than the premium you paid to buy it so you don't make a loss.

@patrader - 10 months ago

Yes, you can sell option before expiry.
But you must ensure the market is liquid enough, meaning there are enough buyers for the options or you are going to be stuck selling to some shit head buyer that will give you an unfair price.