@deltatrendtrading: Replying to @bluebestock Here’s why exercising an option before expiration almost never makes sense. #finance #education #trading #optionstrading
it's refreshing listening to someone who actually knows what they are talking about
2025-02-06 18:43:49
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Jesse :
Sir this is a casino
2025-02-06 21:14:15
40
Brandon :
too complicated imma just go play blackjack
2025-04-07 03:17:00
2
Noah :
Wouldn’t the dividend be factored into its value when u sell though? So it still wouldn’t make sense
2025-02-09 21:01:25
2
Landon :
For this reason also, there’s really no reason for a retail trader to touch options. Extrinsic value is seeded in the premium you pay. Not worth it and markets too efficient
2025-02-06 19:01:44
1
liuk5440 :
call options yes, put options no
2025-03-11 04:12:02
1
Mort Silverstien✡️ :
Should you only early exercise when the dividend payment is greater than the time value left on the contract? Are you getting bad EV on contracts with dividends in them if you dont excercise there?
2025-02-07 19:22:00
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Leek :
I thought for American puts it can be rational to excercise to early. Sometimes the value of early exercise is higher due to the ability to reinvest realised gains, is more than payoff ar expiration?
2025-02-09 20:32:05
1
Victor Uribe :
Ive always said options are just a game of hot potato
2025-02-07 02:41:57
1
Jack Mac :
Yupp exactly there is extrinsic value in the possibility that the share price moves in the holder’s favor in the time remaining before expiration
2025-02-06 20:26:06
1
dom :
deep ITM call with negative interest rates (same reason as for a dividend paying stock)
2025-02-07 14:22:41
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Coleman Wall :
Wouldn’t another reason be if the account doesn’t have any cash in it, and you hold it till the expiration date ITM. Your broker requires to have funds to buy 100 shares, no cash you get margin called
2025-02-07 00:35:02
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connor :
What if I want to close the position after hours to neutralize overnight risk? You can exercise options after market close and sell the shares on the overnight market.
2025-03-21 17:25:50
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Alexandre :
Options are less efficent than stocks due to time until expiration and implied volatility, shorted dated options are harder to value, even black scholes is not accurate
2025-02-09 12:10:50
1
Wolf for Dinner :
I sold a cash secured put and was up 70% last week then the other day i was - 40%. I should of closed it when I was in profit.
2025-02-06 21:25:19
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35683batl58495 :
Is there a formula to calculate extrinsic value?
2025-02-24 07:48:49
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NoSteinNoGate :
Who exercises the option in the end usually?
2025-03-16 11:10:53
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Muscle Money Joy :
or you want to lock in your weekend and a few pennies are worth the peace of mind. Great rundown!
2025-02-06 18:35:02
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Olaaf :
ty
2025-03-19 21:03:18
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StableProjectorz :
great info
2025-03-25 13:32:54
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Yeah :
I just don’t get why anyone would buy before the expiration, someone has to own it at expiration so why would they buy and hold to exp?
2025-02-06 19:10:18
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BCS :
Why not exercise if your goal is to build a position? I have 8800 GME shares that make me insane returns on selling CSP and CCs. On the run to 60 I made 50k in a week selling ATM CCs.
2025-02-07 00:50:36
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