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A call option is a contract giving the owner the right, but not the obligation, to buy a specified amount of an underlying security at a pre-determined price within a specified time frame. Related tags are icall-options, options, options-assignment, option-exercise and should be used when appropriate.
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Can I buy an out-of-the-money call and then sell it before it reaches the strike price?
I'm new to options trading so if this question does not make sense or is stupidly easy please bear with me. I'll try to show my thought process through an example.
XYZ is currently trading at $100. …