Deep ITM Options

[CodeBreaker528]

Other than expiration, time decay, and market reversal are there any probelms that arise from holding an in the money option?
Will I ever have problems exiting a deep ITM option?

 

[Technically Fundamental]

Losses

 

[Martinghoul]

I have a hard time thinking of expiration as "a problem" for an option. If you think about it, theta (aka time decay) for an ITM option is also not particularly exciting. As to mkt-reversal, I don't really understand what you mean.

You won't have a problem exiting a deep ITM option. If you don't like the bid/offer in options, all you have to do is hedge using the underlying.

 

[GladiatorX]

With the liquidity existing in todays markets; You can always hedge your position and be flat at any point... BUYING a deep in the money option carries the risk of the premium... Thats it. If you want to lock in a loss or a win, that is always ALWAYS an option.

From what you've wrote; It would seem you should concentrate on stocks until you're full knowledgeable about options and how they work from watching them. None of the things you have stated are 'problems'; That is just the contract of the option... Thats how it works, not a problem.

 

[CodeBreaker528]

Sorry about that post, I'm writing from my phone and it seems that a question was mixed with something I thought I erased.
End result was a question that made no sense.

Thanks for the replies. I've learned a lot from this site in the last few days.