If the market price of a stock is 30, can I sell a call option that is currently in the money such as a strike price of 29?

  • Yes, you can and the logic in doing so should depend on other aspects but if you are naked the call, it might not be a good idea. – NuWin Jul 27 '18 at 5:47

If you have account approval to sell options then you can sell any strike price that you want as long as you have sufficient margin to support the transaction.

  • "any" as in $7.77, $9.99, or $12.3456? Or some other "any"? :) – Chris W. Rea Jul 27 '18 at 21:24
  • @Chris W. Rea - I'm sorry but I don't understand your question if it's a serious one or get the humor if you're kidding. Assuming the former, options with odd strike prices like $7.77 or $9.99 but not $12.3456 occasionally arise from special dividends or M&A so yes, you could sell "any" of them if you have the approval to sell options as well as the available margin in your account. – Bob Baerker Jul 27 '18 at 22:41
  • I was too terse. I was wondering if "any strike price that you want" was intended to be interpreted liberally, e.g, the call writer could choose his own strike price, or whether it needs to be listed already. I've written options but always assumed I needed to stick to what is already listed. i.e. somebody else has established the available strikes? – Chris W. Rea Jul 28 '18 at 2:43
  • 1
    @Chris W. Rea - Strike prices for exchange traded options (US) are set by the exchange. You can request additional strikes be added. If the request is reasonable, they'll be available to trade the next day. For example, a $13.50 strike exists for the next 2 weeks but not for the 3rd week. OTOH, if the stock is $75 and there are strikes from $50 to $100, they won't add a $150 strike for you. You can create your own strikes and other option terms with OTC deals but those are for the big players and that transaction requires that the Investment Bank finding an agreeable counter party. – Bob Baerker Jul 28 '18 at 13:36

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.