Something I don’t understand with covered calls/naked calls.

[Auctor]

Something I don’t understand with covered calls/naked calls.

<!-- SC_OFF --><div class="md"><p>If I buy call options on an investment and it goes up and meets my strike price. Do I need to buy the stock/investment and complete the contract or can I sell the contract to someone else to complete?</p> <p>Let’s say I buy a call for 100 shares for $0.50 and it does what I expected, do I buy the stock and exercise the contract with the sale of the stock my profit? Or do I sell the contract to someone and they get a discount?</p> <p>I understand what covered and naked calls are, but I’m not sure how they are exercised to turn a profit. </p> <p>Thanks in advance.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/HotelHero"> /u/HotelHero </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/rz8s2v/something_i_dont_understand_with_covered/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/rz8s2v/something_i_dont_understand_with_covered/">[comments]</a></span>Kind Regards R