I have sold LMT call 450 (expiration day is today) one month again and it goes up to 494 at one point and also at 480 this morning. I did not buy back my call since the option price gap is so big, also I didn't expect it will drop so much today. But the buyers of my option, if he excise the option and just sell the stock, it much easy for him and better for both of us. Now the buyer option is 0 now and I will take some loss (not naked call)
I also sold LMT naked put option before but the stock just dropped a lot and the buyer excised the option one week before option expiration day and he is right because the next week, LMT bounced back.
when option is deeper in the money, spread is big, excise and sell is easier.
