Get If The Underlying Is At Or Above The Strike On The Respective Redemption Date, The Certificate Will

Call sellers generally expect the price of the underlying stock to remain flat or move lower. If the stock trades above the strike price, the option is considered to be in the money and will be exercised. The call seller will have to deliver the stock at the strike, receiving cash for the sale.

In the case of a call option, if the strike price is above the spot price (current market value), that option is out of the money because the holder would buy shares above the market price if they exercised it.

A covered call is therefore most profitable if the stock moves up to the strike price, generating profit from the long stock position. Covered calls can expire worthless (unless the buyer expects the price to continue rising and exercises), allowing the call writer to collect the entire premium from its sale.

When the stock price equals the strike price, the option contract has zero intrinsic value and is at the money. Therefore, there is really no reason to exercise the contract when it can be bought in the market for the same price. The option contract is not exercised and expires worthless.

Call sellers generally expect the price of the underlying stock to remain flat or move lower. If the stock trades above the strike price, the option is considered to be in the money and will be exercised. The call seller will have to deliver the stock at the strike, receiving cash for the sale.

The strike price of an option is the price at which a put or call option can be exercised. A relatively conservative investor might opt for a call option strike price at or below the stock price, while a trader with a high tolerance for risk may prefer a strike price above the stock price.

If the underlying security closes trading below the strike price of a call option on the day of expiration, that option will have no value. Likewise, if the underlying security closes trading above the strike price of a put option on the day of expiration, that option will have no value.

In the case of a call option, if the strike price is above the spot price (current market value), that option is out of the money because the holder would buy shares above the market price if they exercised it.