The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “How soon can you sell a stock after exercising a call option?” We’re going to go off the assumption that you had a long call option which again, gives you the right, but not the obligation to purchase stock at the strike price in the future. And let’s say that you acted on that right and you purchased or exercised your call option which therefore, allowed you to purchase stock at your strike price. Assuming your strike price is $100 a share, you would exercise your 100 strike call option and you would purchase stock at $100 a share. Now, the question is – “How soon after exercising this call option can you sell the stock back?” And the answer is as soon as the stock hits your account, you have the ability to sell it right back. If you exercise that option contract and it takes half a day for the brokers to actually deliver the shares to your account or if it takes 15 minutes