should i exercise my stock options?

Quick question guys; is it a good idea to exercise my stock options? or do i just sell the option when the price appreciates?

C
@cahaya_dewan - 9 months ago

Exercising an in-the-money option could sometimes earn you less profit than you would have made by simply selling it off. Do your calculation to be sure that any gain you hope to make will cover the premium you paid to buy the option.

P
@paul_petit - 9 months ago

Call options rarely get exercised because the extrinsic value (the premium others are willing to pay to buy the call from you) may be higher than the intrinsic value you get from exercising the call. So, it makes business sense not to exercise the call and instead sell the call and make more money.

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