If i have a long call option and the stock price skyrocets in the AH. Would shorting 100 shares of the stock effectively "sell" or hedge the option since it cannot be sold itself?
Wouldn't it "lock" the option in so that the net gain/loss would move inversely of the gain/loss of the shorted stock?
Example: i have options on AMC right now and the price skyrocketed from $5.26 to $6.50 in the after hours and that would have netted me a pretty penny. Really, I was wishing i could sell last night because i thought it would drop back in the morning. Today, i wake up, and it is in fact back down to $5.25, no real loss on my part (so far) but definitely a bummer.
