Avid Bioservices Inc (CDMO)

[investingdog]

<< Is there some other way to close out a call option other than exercising it or selling shares against it? >>


Well, your question is not very clear. The answer is really simple.

If you buy calls you can close out by selling the same calls or by excercising if they are in the money. Normally you wouldnt want to exarcise if there is a time value left in the calls, it is better to sell or wait for the expiration at which point you would be assigned shares for the strike price.

If you write or sell calls you can sell against your shares which is called writing covered call. One can also write or sell naked calls (without having the shares). In either case you are required to provide the shares at the strike price if the calls are in the money at expiration or if the holder of those calls decides to exercise.