However, there are also scenarios where you might prefer to let your contracts expire worthless, or even exercise ... short a call or put option that's in-the-money, and you doubt the trade ...

4 Reasons Not to Exercise an Option Let's consider an example of a call option on XYZ Corporation with a strike price of 90 and an expiration in October. The stock is trading for $99 per share.

Welcome to the world of call options ... However, options trading is not for the faint of heart, so it is imperative that investors exercise caution, conduct thorough research and seek ...

One of these strategies is trading options ... so his call option will cost him $300. However, if the stock moves the way he wants it to and increases by 20%, he can exercise his call option ...

If this happens, a call option is "in the money (ITM)," which means the buyer is motivated to exercise the option. How strong ...

if a stock is currently trading at $100, you might buy a call option that gives you the right to buy the stock for $105 a year from now. If the stock moves above $105, you might exercise your ...

Trading stock options ... The receipt of an exercise notice by an option seller (writer) that obligates him or her to sell (in the case of a call) or purchase (in the case of a put) the underlying ...

then the buyer would exercise the option contract, since $100 would be a bargain compared to the prevailing share price. There are many ways to trade options. In addition to call options as ...