Im new to options trading and I had a question about day trading options. I’ve been playing the earnings game (I’ve done well I hope). However, my question is : I sell an option a week before expiration date for a huge profit 2-300% however the strike price has not been met. How does this happen? Example for today I purchased a $40 call on MLHR last night with an expiration of 7/20. I sold it today on 7/3 when the stock was at $38 for a 120% gain. How does this happen, and why would anyone wait to excersise at $40/share when you could sell the contract for much more profit? Am I selling the contract to someone else at a higher premium? And again before the strike price so what is the point of it? Thank you in advance
