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.

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 ...

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 ...

For example, say you buy a call option on XYZ stock with an exercise price of $100. If at the option's expiration date the price of XYZ stock is less than $100, the option is worthless.

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 ...

They have the choice to exercise their rights ... In a short call, the trader is on the opposite side of the trade (i.e., they sell a call option as opposed to buying one), betting that the ...

If you're interested in options trading ... A call option is purchased in hopes that the underlying stock price will rise well above the strike price, at which point you may choose to exercise ...