A pretty basic/straightforward question but one, I assume, with multiple perspectives and strategies.
Are there many instances where exercising an ITM call option is the smarter play than selling the option for a profit?
Is the answer as simple as - “yes, if you want to own the stock and/or think it will go up more post-option-expiration”
It seems to me that exercising the option somewhat defeats the purpose of purchasing it in the first place, because you could have just purchased the shares outright without paying the premium. Particularly if the stock pays a dividend.. or is this just a psychological hurdle?
When to exercise? When to sell?
Cheers, thanks.
[link] [comments] https://www.reddit.com/r/stocks/comments/14ag1i1/when_to_sell_vs_exercise_a_call_option/
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