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What if call options are purchased and sold before expiration?
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What if call options are purchased and sold before expiration?

Calls can be purchased and sold without the intent of exercising the right to buy the underlying stock. This strategy allows for capital gains to be made without ever having to purchase or sell the underlying stock. This strategy is risky because the price of the option can depreciate in a relatively short amount of time, resulting in losses. Additionally, option investors can lose their entire investment in a call option.

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